SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) has extended the closing date of its share purchase plan (SPP) to raise up to $5 million by a week to Monday, December 13, 2021.
The Smart Cities and AI software solutions provider says that the extension will ensure that all eligible shareholders have additional time to participate in the offer.
Eligible shareholders are able to apply for SPP shares at an issue price of $0.12 per share up to a maximum of $30,000 in value or a total of 250,000 SPP shares without incurring any brokerage.
READ: SenSen Networks raises $4.2 million to fund growth momentum, opens $5 million SPP
The SPP follows a well-supported placement to professional and sophisticated investors that resulted in SenSen raising $4.2 million at $0.12 per share.
SNS received strong support from existing long-term strategic shareholders including GV Prasad, an Indian billionaire and co-chairman of Nasdaq listed Dr Reddy’s Laboratories Ltd.
Use of funds
Funds raised in the placement and SPP will be used to deliver continued growth momentum for the company through targeted investment in sales, marketing product innovations, product delivery and project management.
They 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.
Proceeds will also fund ongoing R&D, technology platform and product development, and patents along with working capital, project management and offer costs.
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.
“Strong support”
Following the placement, Subhash Challa said: “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.”
He added: “We have earlier provided guidance about our growth through the peak of the pandemic crisis.
“We are on track to double 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 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.”
The revised indicative timetable for the SPP offer.
Participation in the SPP offer is optional and there is no requirement for eligible shareholders to participate.
Those that have already applied for SPP shares under the offer are not required to resubmit their application form unless they wish to apply for additional shares up to a maximum application amount of $30,000.
Ord Minnett Limited is acting as sole lead manager and bookrunner and Thomson Geer is acting as legal advisor to the equity raising.