Douugh (ASX:DOU) secures $20M funding from US-based Long State

March 29, 2022 03:20 PM AEDT | By Bhawna Gupta

Douugh (ASX:DOU) secures $20M funding from US-based Long State — Image source: © Jirsak | Megapixl.com

What is the deal about?

Douugh will dilute its pool of securities by about 5% in exchange for a flexible, on-demand funding facility.

Furthermore, the arrangement provides funding to support the company's worldwide development, which will begin in Australia in cooperation with international banking-as-a-service (BaaS) provider Railsbank and research and capitalise on potential business B2B licencing prospects.

Long State Investments, a New York City-based investor, will become Douugh's second-largest shareholder once the 35 million shares are issued - which will happen regularly as the fintech uses its discretion to draw down on the $20 million facilities, which is essentially worth as much as the company itself.

Source: © Marianvejcik | Megapixl.com

Douugh will also issue $50,000 in shares to Long State for fees related to the facility's setup and another $10 million in unlisted options to be purchased at $0.108 per share, subject to shareholder approval.

About Long State Investments

Long State Investments specialises in providing capital to growth-oriented businesses. It invests in fintech, artificial intelligence, blockchain, mining and clean energy sectors.

Australia, Canada, Chile, Singapore, the European Economic Area (EEA) countries, Fiji, South Africa, the United Kingdom, and the United States are among the group's global investments portfolio.

Commenting on the investment, Long State MD Philip Ho said:

Bottomline

Long State Investments' significant investment in Douugh validates the company's business model and overall expansion strategy.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.