Openn Negotiation Ltd (ASX:OPN) is looking to raise up to A$5 million to help it move forward with the delivery of its pilot programs in North America.
The raise will be split into two, with the company already receiving firm commitments from sophisticated and professional investors to raise A$3 million through the issue of fully paid ordinary shares at A$0.15 per share.
The other A$2 million will come from a share purchase plan (SPP), at the same issue price as the placement.
Openn’s managing director Peter Gibbons said of the raise: “The capital raising assists in assuring the timely delivery of the multiple pilot programs that are being undertaken across Canada and the United States, to ensure Openn is well funded through to live transactions and commercial roll-out in North America.”
Funds for full expansion
The property technology company is raising funds for the following:
- Building out North American operational team to fast-track expansion into the USA and Canada.
- Refining the company’s software platform to meet the requirements of agents in North America.
- Finalising partner integrations, with consumer, broker and agent enhancements that align with the company’s 'go to market strategy'.
- Costs of the placement and SPP and general working capital purposes.
About the placement
Openn will issue a total of 20 million shares at A$0.15 per share to raise A$3 million (before costs). The price represents a discount of 11.8% to the last close on June 29, 2022. Settlement is scheduled to take place on Monday, July 11, 2022.
About the SPP
Openn will issue up to 13,333,334 SPP shares at the same price as the placement to raise up to A$2 million (before costs).
Eligible shareholders will have the opportunity to apply for up to A$30,000 worth of new shares. New shares issued under the SPP will rank equally with Openn’s existing shares on issue. Applications must be made, and payment received by 5.00pm (WST) on Friday, July 29, 2022 (Closing Date).