OpenLearning Limited Secures $2 Million Funding (ASX: OLL)
Funding Details
OpenLearning Limited (ASX: OLL) has successfully raised $2 million in funding through a combination of an institutional placement and an increase in its loan facility. The company secured $1 million through the placement of 58,823,530 shares at an issue price of $0.017 per share, representing a 6.9% premium to the 30-day volume weighted average price (VWAP). This placement was executed with new institutional and sophisticated investors.
Concurrently, the Education Centre of Australia (ECA), associated with OpenLearning’s Non-Executive Director Rupesh Singh, agreed to increase the limit on its loan facility by an additional $1 million. All other terms of the existing agreement remain unchanged. The combined funding is expected to support the company’s operational needs for over 12 months.
Utilisation of Funds
The proceeds from the placement will be directed towards sales and marketing efforts, new product development, and working capital. OpenLearning aims to leverage this funding to support its growth strategy and further enhance its position in the Edtech sector.
Executive Comments
OpenLearning CEO, Adam Brimo, expressed gratitude to the new institutional investors and ECA for their support. Brimo stated, “OpenLearning now has both a strong growth profile and a good funding runway over the next year to deliver on its strategic goals. We have a diversified product offering within the Edtech space.” The CEO also highlighted the appointment of a new Chief Revenue Officer based in Australia and a strengthened sales team in India focused on driving growth.
Securities and Approvals
The company plans to issue 16,516,655 shares without prior shareholder approval under its 15% placement capacity, and an additional 42,306,875 shares under its 10% placement capacity, pursuant to ASX Listing Rules. The allotment of the new shares is expected to take place around 16 December 2024.
The move to increase ECA’s loan facility is potentially advantageous, allowing OpenLearning easier access to funds while preserving shareholder value.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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