Linius Receives Firm Commitment From Investors To Raise $3.5 Million Through Placement

Linius Receives Firm Commitment From Investors To Raise $3.5 Million Through Placement

Linius Technologies Limited (ASX: LNU) is into technology business. The company is engaged in the research and development of technology products, software development, and the commercialisation and licensing of computer software. Linius Technologies focuses on video virtualisation.

The company today, on 8th April 2019, has updated that it has garnered firm commitments from institutional investors to raise finance amounting to $3.5 million, before incurring the costs of placement.

The placement includes an approximately $1 million investment from Linius directors subject to the shareholders’ approval, which will be sought at a general meeting of shareholders to be held as soon as practicable. The placement has received a strong response from new investors together with existing shareholders, including Robert Kirby AO, Executive Chairman of Village Roadshow.

The placement will result in the issuance of 100,000,000 fully paid ordinary shares at $0.035 per share to raise $3.5 million before costs. The placement will be conducted within the company’s existing Listing Rules 7.1 and 7.1A placement capacity, namely 93,559,000 shares issued according to LR 7.1A and 6,441,000 shares issued according to LR 7.1. The issue price is higher than the minimum price requirement according to LR 7.1A.3 and represents a discount of 18.7% to the 15-day VWAP (Value Weighted Average Price). Blue Ocean Equities Pty Limited has acted as a Lead Manager for the purpose of placement.

Linius will use the proceeds of the placement to fund continuing operations along with its three-pronged strategy for achieving its vision of making all the world’s video accessible as data. These strategies are:

  • Linius Video Services, which involves Linius’ Software-as-a-Service platform designed to empower businesses, developers, and system integrators around the world to make and deliver previously impossible hyper-personalised video experiences at scale.
  • Engaging into partnerships to scale the distribution and sale of solutions built on LVS and VVE, exemplified by the recent announcement of Linius’ admission to Microsoft’s Co-Sell Program.
  • Engaging in direct sales to prove solutions and business models in key verticals, including sports, news and media, education, sports gambling, and corporate communications.

In conjunction with previously communicated lower quarterly run-rate and now-completed proof-of-concept, Linius believes the placement provides the company with a runway to execute this strategy and drive revenues. The placement (excluding director participation) is scheduled to settle on 16th April 2019.

Sponsored ad by Kalkine

On the stock-performance front, the stock has posted a YTD return of -19.23%. The company also has posted return of -40% over the past six months. At market close on 8th April 2019, the stock of the company traded at a price of A$0.043, up 2.381% during the day’s trade with a market capitalisation of A$39.45 million. The stock opened the trading day at A$0.044, reached its intraday high of A$0.046, and touched the intraday low of A$0.043, with a daily volume of 3,174,159. It had a 52-week high price of A$0.110 and a 52-week low price of A$0.029, with an average volume of 1,198,609.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here