Dotz Nano Limited (ASX:DTZ) an advanced technology company developing, manufacturing and commercialising tagging, tracing and verification solutions, has successfully secured funding of $800,000 before costs via the issue of converting loans to sophisticated and professional investors.
Loans will convert to equity upon shareholder approval at A$0.08 per share plus 1:4 unlisted options exercisable at A$0.12 per share. Funds raised will be used as working capital to facilitate commercial accords in Oil & Gas, Plastics and Lubricants. The company has stated that it is now funded to facilitate 2019 commercial agreements.
Dotz has previously conducted successful pilots in Oil and Gas tracing, plastic and polymer marking, ink penetration, lubricant tagging and dilution analysis. The company is believed to have been in commercial discussions with several prospects in those sectors.
Conversion of the converting loans into fully paid ordinary company shares will occur after shareholder approval at a shareholder meeting in February 2019. New shares under the converting loans will rank equally with the company’s existing ordinary shares on issue.
Commenting on the successful raise, CEO of Dotz, Uzi Breier said:
We are very pleased to have received strong support from the founding shareholders who have been on the journey with us from the start.
In addition, the converting loans have the support of an Asian-based sophisticated investor who also sees a global demand for Dotz’s patented technology in Oil & Gas, anti-counterfeiting and product liability sectors.
“It is an exciting time for the Company as we have moved through the research and product development phases to advanced negotiations with several leading companies to use our unique products in sectors which have the most immediate demand for our technology.
“Over the past six months Dotz has significantly reduced its cost by 30 per cent, including management salaries, to better utilise resources as we reach commercialisation.”
