Connected IO (ASX:CIO) has received firm commitments from sophisticated investors to raise $3 million via a share placement at $0.03 each.
The funds raised will be used for working capital as the company seeks to meet the recent increase in purchase orders.
Last month, Connected IO secured an order worth $734,000 to deliver its 4G LTE router product to Verizon preferred distributor, Mach Networks.
The company has executed an incremental revenue share agreement with Mach and has received an initial purchase order for 3,000 units of the 4G LTE router product.
Connected IO specialises in machine to machine (M2M) connectivity, providing hardware and software solutions to companies including Verizon and AT&T.
Additionally, the company recently delivered its ER1000 routers to more than 3,000 Burger King stores across the U.S.
Burger King will use Connected IO’s ER1000 routers for in-store applications including fail-over for point of sale terminals, quality monitoring systems, sensors and security.
Connected IO has also teamed up with Rosco Vision Systems, a Verizon referred partner and one of the largest suppliers of video systems to the worldwide commercial vehicle market.
Rosco has purchased thousands of Connected IO modems for use in vehicles throughout North America.
The new collaboration was confirmed by Rosco after extensive testing of thousands of Connected IO modems across North America.
Rosco is a suppliers of camera systems and other visual safety solutions for clients including Freightliner, AM General, Navistar, Paccar, Mack, Oshkosh, Fed Ex, UPS and USPS.
The camera systems supplier’s relationship with large OEMs in the commercial vehicle industry will create an opportunity for Connected IO to penetrate into an $8.8 billion vertical market that is growing at 9.2%.