SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) has raised $4.2 million via a well-supported placement to professional and sophisticated investors at an issue price of $0.12 per share.
The leading smart cities and AI software solutions provider has received strong support from existing long-term strategic shareholders including the likes of GV Prasad, an Indian billionaire and co-chairman of Nasdaq listed Dr Reddy’s Laboratories Ltd.
Funds raised will be used to deliver continued growth momentum for SNS through targeted investment in sales, marketing product innovations, product delivery and project management.
As a further capital raising initiative, a share purchase plan (SPP) has been launched today aiming to raise $5.0 million also at $0.12 per share.
“Continue growth momentum”
SenSen chairman and CEO Subhash Challa said: “The proceeds of our January 2021 capital raising were carefully and successfully deployed in sales and marketing initiatives which have already resulted in a significant number of qualified opportunities.
“This new capital will be used to continue this growth momentum through targeted investment in sales, marketing, product innovations, product delivery and project management and set up SenSen for strong top-line and ARR revenue growth.
“We are particularly delighted to have our existing sophisticated investor shareholder base continue their strong support for SenSen’s growth plans, and we look forward to seeing our retail shareholders participating through the SPP at the same price.”
Placement summary
The placement was conducted through the issue of 35 million new fully paid ordinary shares at $0.12 per share.
This issue price represents a discount of 11.2% to the 30-day Volume Weighted Average Price (VWAP) of SenSen shares.
The $4.2 million placement includes $600,000 worth of shares proposed to be issued to chairman & CEO Subhash Challa and executive director & COO David Smith.
Use of funds
Funds raised from the placement will be used to continue investing in sales and marketing initiatives that have gained momentum since the appointment of senior sales and marketing resources in the June quarter of 2021.
They will also fund ongoing R&D, technology platform and product development, and patents.
Furthermore, the placement will provide funding for working capital, project management and offer costs.
“Growing demand for AI products”
Challa adds: “We have earlier provided guidance about our growth through the peak of the pandemic crisis.
“We are on track to double the top-line revenue to $11 million+ in FY22 from $5.5 million in FY21 and increase ARR from $2.7 million in FY21 to approximately $8 million by the end of FY22.1
"With COVID 19 getting behind us and the economies opening globally, we have never been more excited about the growth prospects for SenSen.
“The proposed accelerated growth will be achieved through our plan to grow market share in our target verticals and geographies, and assisted by growing demand for AI products globally, driven by post-COVID-19 economic recovery.”
Share purchase plan
SenSen has also launched a share purchase plan (SPP) today and is targeting to raise $5.0 million at $0.12 per share.
The SPP opened at 9:00 am, Tuesday, November 9, 2021, and will close at 5:00 pm, Monday, December 6, 2021.
Under the SPP, eligible shareholders will be entitled to subscribe for up to $30,000 of SenSen shares.
Every SenSen shareholder registered as a shareholder in Australia or New Zealand as at 7.00pm (Sydney time) on the record date of Thursday, November 4, 2021, will be entitled to participate in the SPP.
Ord Minnett Limited is acting as sole lead manager and bookrunner and Thomson Geer is acting as legal advisor to the equity raising.