RemSense Technologies Ltd (ASX:REM) has revised its business strategy in a bid to accelerate and expand growth opportunities for its virtualplant digital twinning solution.
To support the strategy, the company has launched a $2 million share purchase plan (SPP) at an issue price of 16 cents per share.
As well as providing additional working capital, these funds will be utilised to execute contracts and prospects resulting from the expanded opportunity.
In early 2022 RemSense realised that through partnering and integrating with global industrial asset management and analytics system providers such as IBM (NYSE:IBM) that the opportunities for its virtualplant digital twin solution were exponentially larger than anticipated.
The total market size with the IBM industrial asset management customers alone is an estimated $4 billion, hence, capturing just a small share will be significant for RemSense.
Revised business strategy
RemSense’s revised business strategy includes:
- Redirected resources to develop a virtual plant as a fully certified enterprise-grade solution with analytics capabilities as identified by targeted partners and clients.
- Refreshed its marketing strategy to give greater focus on strategic partnerships with leading global asset management solution providers.
- Developed new features to extend the product further than originally planned in this time period.
SPP summary
Remsense’s shareholders will be invited to subscribe for up to $30,000 of new shares under an SPP at 16 cents per share.
This represents a 15.8% discount of the 19 cents paid by the directors and founder shareholders in recently exercising 25-cent options to inject approximately $400,000 into the company enabling the acquisition of virtual plant IP and patents from Woodside Energy.
It is intended that the SPP will raise up to $2 million and it is not underwritten.
RemSense retains the right to accept oversubscriptions or to scale back applications at its absolute discretion.
New shares issued under the SPP will rank equally with existing company's shares from the date of issue.