Dotz Nano Secures A$2.235 Million in Private Placement to Advance Nanotechnology
DOTZ NANO LIMITED (DTZ) Share Update July 2024 Monday 29th
Dotz Nano Announces A$2.235 Million Private Placement Offering
Dotz Nano Limited (ASX: DTZ), a pioneer in climate and industrial nanotechnologies, has successfully raised A$2.235 million through a private placement offering. This strategic move aims to accelerate the development of their innovative DotzEarth technology.
Instant Summary:
- Dotz Nano raises A$2.235 million through a private placement.
- 22,350,000 new fully paid ordinary shares issued at A$0.10 per share.
- Participants receive one free unlisted option for every new share subscribed.
- Options exercisable at A$0.165, expiring two years from the date of issue.
- Placement includes commitments from existing and new institutional investors.
- Related parties of the company's directors commit up to A$600,000.
- Settlement expected on 1 August 2024, with trading commencing around 5 August 2024.
- Issue price represents a 33% discount to the last closing price of A$0.15.
Private Placement Details
Dotz Nano Limited has announced a successful private placement, raising A$2.235 million before costs. The placement involved issuing 22,350,000 new fully paid ordinary shares at an issue price of A$0.10 per share. Participants in the placement are also entitled to subscribe for one free unlisted option for every new share subscribed, with each option exercisable at A$0.165 and expiring two years from the date of issue.
The placement was well-received by both existing and new institutional and sophisticated investors. Dotz Nano's CEO, Sharon Malka, expressed gratitude towards the shareholders for their continued support and welcomed the new investors. She emphasized the strategic value of the DotzEarth technology, which is central to the company's efforts in climate and industrial nanotechnologies.
Investor Commitments and Approvals
As part of the A$2.235 million raised, related parties of the company's directors, Mr. Doron Eldar and Ms. Kerry Harpaz, have committed to invest up to A$600,000. This commitment involves an aggregate of 6,000,000 new shares and 6,000,000 placement options. The related party placement securities will be subject to shareholder approval at an Extraordinary General Meeting of Shareholders scheduled for September 2024.
The placement falls within the company's capacity under ASX Listing Rule 7.1 and 7.1A, and therefore, does not require additional shareholder approval. Ethicus Advisory Partners acted as the Lead Manager for the placement.
Market Impact and Trading Details
Settlement of the placement is expected to occur on 1 August 2024, with the new shares anticipated to commence trading on or around 5 August 2024. The issue price of A$0.10 per share represents a 33% discount to the last closing price of A$0.15 on 25 July 2024, a 23% discount to the 15-day volume-weighted average price (VWAP) of A$0.123, and a 27% discount to the 30-day VWAP of A$0.127.
The company has confirmed that the issue price satisfies the pricing requirements stipulated in Listing Rule 7.1A.3. This announcement has been authorized for release by the Board of Directors of Dotz Nano.
The successful private placement is likely to have a positive impact on Dotz Nano's stock, as it demonstrates strong investor confidence in the company's strategic direction and its DotzEarth technology. The significant discount on the issue price could attract more investors, potentially boosting the stock price in the short term. However, the dilution effect from the new shares and options might moderate this impact.
Investor Reaction:
Analysts are expected to view this announcement positively, given the substantial funds raised and the strategic importance of the DotzEarth technology. The involvement of both existing and new institutional investors signals strong market confidence. However, some investors might be cautious about the dilution effect and the discount on the issue price.
Conclusion:
Dotz Nano's successful private placement marks a significant milestone in its journey towards advancing climate and industrial nanotechnologies. Investors should closely monitor the company's progress with DotzEarth and consider the potential long-term benefits of this strategic move. The upcoming Extraordinary General Meeting in September 2024 will be crucial for finalizing related party commitments.