Hyper-personalised video developer Linius Technologies Limited (ASX:LNU) is undertaking a placement to raise up to A$3 million through the issue of ordinary shares in the company to US-based institutional investor New Technology Capital Group, LLC (NTCG).
Linius’ purpose is to elevate the educational, information, and entertainment value of the world’s video through hyper-personalisation. The company makes it possible to connect and search vast libraries of video so users can create an infinite amount of personalised video compilations on-the-fly, providing the most relevant content to each viewer.
Its patented Video Virtualization Engine (VVE) turns big, bulky video files into lightweight, searchable data that is enriched with AI and ML, making it easy and efficient for users to find and share what matters to them. Creators and owners of video can drive greater viewing, and ultimately monetisation of their video assets.
The placement ensures continued delivery of growth strategy.
Proceeds from the placement will be used to accelerate the commercialisation of existing Linius products and deliver new annual recurring revenue from current new business pipeline, along with funding the company’s general working capital requirements.
In the company’s latest market update webinar in December 2021, new CEO James Brennan outlined Linius’ near-term priorities, including:
- Conversion of the existing strong sales pipeline with current products the Sports, Education and Enterprise sectors.
Focus on customer success to increase adoption and ensure satisfaction from existing clients, which will deliver the success data, proof points and client referrals needed to drive repeat sales.
Ongoing product development to drive user engagement and to create an efficient, scalable platform with well documented application programming interfaces and reference designs, a partner ecosystem, and a marketplace for future commercial scale.
“I am delighted that New Technology Capital Group has taken an interest in Linius, our technology and our vision to grow our business,” Mr Brennan said.
“Our customers are experiencing strong growth in adoption of Linius solutions, and we have the new opportunities in our pipeline to grow ARR in the near term. The funding will allow me to execute my focused plan to accelerate the success of existing customers and convert current opportunities to revenue.”
The placement will be made by way of NTCG prepaying the subscription price of shares to be issued by Linius. The first tranche of the placement will raise A$2,000,000 for A$2,120,000 worth of Subscription Shares. The funds are committed and will be paid within the coming week.
The second tranche of the placement will raise A$1,000,000 for A$1,060,000 worth of Subscription Shares.
