September 23, 2020

Linius Raises $5 Million

Melbourne, Australia – September 23, 2020: Linius Technologies Limited (ASX: LNU) – the only cloud-based solution that transforms static video into hyper-personalized video i experiences with its world-first Video Virtualization EngineTM (VVE) ii – has received firm commitments from professional and sophisticated investors to raise $5 million, before costs (Placement).

The Placement received strong support from new institutional shareholders as well as continued support from existing shareholders and includes approximately $210,000 investment from Linius directors, subject to shareholder approval, which will be sought at a General Meeting of shareholders to be held as soon as practicable.

The Placement will result in the issue of 178,571,429 fully paid ordinary shares at $0.028 per share to raise $5 million, before costs. The Placement will be conducted within the Company’s existing Listing Rules 7.1 placement capacity for 171,071,429 shares and pursuant to LR 10.11 for 7,500,000 shares in respect of shares subscribed for by directors. The issue price represents a discount of 15.2% to last close, 15.0% to the 15-day VWAP and 1.1% to the 30-day VWAP.

The Company will use the proceeds of the Placement to drive revenue growth with a specific focus on converting existing clients and near-term opportunities to immediate and sustainable revenues.

The Company’s entry into the video conferencing and collaboration technologies market, with Livetiles as an anchor client, is an important factor. Video conferencing has become a critical requirement, enabling working from home and Business Continuity Planning strategies.

The Company will use the Placement proceeds to:

  • assist LiveTiles in selling their Intelligent Meeting Solution, of which Linius is the backbone OEM provider;
  • continue to develop the AI Meeting Solution, with integrations with Webex and Zoom being planned; and
  • promote the solution into the global video conferencing market which, with its 100’s of millions of users,
  • represents a significant opportunity for Linius.

The company also expects previously announced client wins in the sports market, that have been impacted by COVID 19, to deliver revenues as live sport re-commences, along with revenues associated with our news solutionas its deployed.

The Company believes it has the technology suite in place, with the IP protected by granted patents, to deliver recurring revenue growth. At the same time as the Company is focussed on execution of its go to market strategy it does not foresee any material increase in near-term expenditures with any new expenditure having significant revenues as a pre-requisite.

These funds provide the Company with additional runway to execute this strategy and drive revenues. The Placement (excluding director participation) is scheduled to settle on 30 September 2020 with allotment on 1 October 2020.

Blue Ocean Equities Pty Limited (AFSL 412765) acted as lead manager for the Placement.

This announcement has been approved for release to ASX by the Board of Directors of the Company.

Jodi Cutler
Head of Media Marketing Linius
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