Linius Technologies (ASX:LNU) Launches $3.3M Capital Raising and Appoints Board Members
Capital Raising and Funding
Linius Technologies Limited (ASX:LNU) announced a $3.3 million capital raising initiative, including a $350,000 placement of new shares and the establishment of a $3 million convertible note facility, with approximately $2 million already committed by professional and sophisticated investors.
Board Appointments
Former AFL CEO Andrew Demetriou and experienced financial professional Brent Jones have been appointed to the Linius Board of Directors. Their expertise is expected to drive commercial value and support the company’s growth objectives.
Executive Comments
CEO Ben Taverner stated, “This committed funding will provide the firepower for Linius to close and deliver on key short-term opportunities that are strategically positioned to generate significant revenue for the company and strengthen our position within the industry. It will also accelerate the recruitment of new sales personnel, with new sales engineer and director appointments being finalised, and the company actively seeking two sales managers.”
Chairman Gerard Bongiorno commented, “I am delighted with the support shown by new and existing investors in this fundraising, and welcome both Andrew Demetriou and Brent Jones to the Linius Board. Andrew brings his wealth of knowledge and experience in the sports and entertainment industries including through his previous role as CEO of the AFL. Brent is a seasoned financial services professional with a track record of success in maximising value for shareholders in ASX companies. I look forward to working with both of them. Our main objective remains to achieve strong financial performance and stability, ultimately achieving our goal of cash flow breakeven in the business and enhancing value creation for our shareholders.”
Financial Strategy
All directors will receive their remuneration through convertible notes, saving the company $480,752. The $1.5 million standby equity facility with Eli Capital remains undrawn as part of the overall funding strategy.
Operational Updates
The company is focused on reducing its cost base and has a budget that allows it to recruit four new senior sales personnel. Additionally, several new paid proofs of concept are underway, including a partnership with a major European sports league, supporting the company’s goal of achieving cash flow breakeven.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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