The company said it will issue 33.2mln new ordinary shares at a price of 42.5p each, representing 7.6% of its enlarged share capital, as part of the fundraise. In morning trading on Tuesday, BATM shares were trading at 44p each, down 2.2% on Monday's closing price.
Under a partnership deal with Arm, the British chip maker that was taken over by Softbank in 2016 for US$32bn, BATM is designing network function virtualisation (NFV) projects.
BATM said the net proceeds of the fundraise will be used for advancing the NFV projects with Arm and for new product and use case development for 5G networks, which it believes is a "key growth area” for the business in the “short to medium term”.
The funds will help the group pursue potential acquisitions in networking and cyber. The money will also be used to support marketing and sales as well as aid the development of molecular biology diagnostics and the acceleration of agri-waste and pharma-waste treatment installations.
"This is an exciting time for BATM with great progress being made across our business units, and particularly with our NFV activities and molecular diagnostics," said chief executive Dr Zvi Marom.
"We look forward to utilising these funds to accelerate our growth and to delivering value for our shareholders."
Shore Capital acted as sole bookrunner for the placing.
-- Adds placing price, share price --