RemSense Technologies Ltd (ASX:REM) hopes to raise around $2.7 million to bolster capital support for its growth plans.
The company has completed a placement to raise $475,000 from professional and sophisticated investor clients of Peak Asset Management.
What’s more, the company is set to extend a 1:3 pro-rata entitlement offer to existing shareholders under the same terms in the hopes of raising a further $2.28 million.
Funds for expansion
The funds raised from the placement and the entitlements issue will be used to provide working capital as the volume of work and revenue increases, and to market and expand IBM (NYSE:IBM) partnership opportunities on a global basis.
The funds will also expand sales and marketing activities for the company’s photographic asset visualisation tool, virtualplant, both locally and internationally.
It’s been a busy year for RemSense Technologies Ltd (ASX:REM), which has in that time:
- Developed its virtualplant digital twin solution as a fully certified enterprise-grade solution with analytics capabilities.
- Completed the purchase of intellectual property and patents from Woodside for $400,000 funded by the founder and directors exercising 25-cent options to inject the additional cash required.
- Established a key partnership with leading global asset management system provider IBM – the total market size (five-year value) with the IBM industrial asset management customers alone is an estimated $4 billion.
- Secured a two-year agreement for virtualplant scanning across a number of Chevron’s key LNG assets – with a contract value of $2 million.
- Marketed the product locally so that it is now pursuing 77 Australian-based opportunities.
The company has received firm commitments from Peak to raise $475,000 before costs by placing 6,333,333 shares at 7.5 cents each.
One option will be issued for each share issued – there are 6,333,333 options in total – with the options exercisable at 15 cents each on or before December 15, 2025.
Settlement of the placement will be on Thursday, with shares and options to be issued on Monday, March 27, 2023.
The company will also offer all eligible shareholders in Australia and New Zealand the right to subscribe for shares by way of an entitlements issue. The issue will comprise one new share for every three shares held and will be issued at 7.5 cents per share.
If fully subscribed the entitlements issue will raise approximately $2.28 million. Shares issued in the placement will qualify for the entitlements issue.