- SenSen Networks Limited (ASX:SNS) has raised A$7.15 million capital through a placement activity.
- The funds have been raised to; finance the Company’s international revenue growth acceleration strategy.
- High-conviction global equities fund manager VGI Partners will join the SenSen register as a Substantial Shareholder as part of the capital raising process.
In a significant development, SenSen Networks Limited (ASX:SNS) has raised A$7.15 million capital via the issue of 57.2 million new fully paid ordinary shares to sophisticated and institutional investors. These shares have been issued as part of a placement activity at an issue price of A$0.125 per share.
The issue price signifies a discount of 9.29 per cent to the 30-day VWAP or Volume Weighted Average Price of the Company’s shares.
Following the key update, the share price of SenSen marked an uptick of ~4.3 per cent to A$0.182 mid-day on 6 January 2021.
SenSen, the leading provider of Smart Cities and AI software solutions, has raised the capital to fund its international revenue growth acceleration strategy.
Importantly, ASX-listed VGI Partners Asian Investments Limited Fund (VG8) will join the Company’s register as a Substantial Shareholder as part of the capital raising. VGI Partners is a high-conviction global equities fund manager, headquartered in Australia.
Key Details of Placement
The Company notified that allotment of the Placement Shares would be issued within its 15 per cent placement capacity under the Australian stock exchange’s Listing Rule 7.1. Besides, these shares will equally rank with the current fully paid ordinary shares in SenSen.
Use of Placement Proceeds
SenSen will use the funds raised from the Placement to finance its strategic business plan to bolster revenue and improve its delivery capabilities to international customers, particularly in the USA.
These funds will be utilised to hire new key executives in Project Management and Sales & Marketing to execute the Company’s expansion plan. The recruitment for these positions is anticipated to start immediately.
Besides, the Placement proceeds are likely to be used for Marketing and Business Development Management programs.
SenSen believes that these funds will allow it to extend its COGS inventory for rapid deployment of projects. Moreover, these finances are expected to provide further funds to SenSen for continuing R&D and technology development to maintain and augment the Company’s leading position in its business divisions.
Interestingly, 2020 was a strong growth year for the Company despite COVID-driven repercussions across the globe. SenSen believes that the capital raising activity has further placed it in extremely good stead to execute its aggressive expansion plans in 2021 and afterwards.