Zoom2u Technologies (ASX:Z2U) Successfully Raises $500,000 Through Share Placement
Placement Details
Zoom2u Technologies Limited (ASX: Z2U) has secured binding commitments from wholesale investors to subscribe for 7,142,856 ordinary shares at $0.07 each, raising $500,000 through a placement. The placement price is a 17% premium to the last traded share price of $0.06 on 7 March 2025 and aligns with the 30-day Volume Weighted Average Price (VWAP) of $0.07.
Each two new shares issued in the placement include one free-attaching option with an exercise price of $0.09, expiring on 10 September 2026. Directors have committed to subscribe for 2,142,856 shares valued at $150,000 and will receive 1,071,428 options, contingent on shareholder approval expected at an Extraordinary General Meeting in late April 2025. Additionally, 5,000,000 shares will be issued to other investors under the Company’s 15% placement capacity as per ASX Listing Rule 7.1.
Use of Funds
The funds raised will strengthen Zoom2u’s balance sheet and provide additional working capital to grow its Locate2u business.
Executive Comments
Zoom2u’s Founder and CEO Steve Orenstein said:
“We are raising additional capital to assist us in facilitating the global growth of our Locate2u product. Our sales focus over the last 12-18 months for the Locate2u product has been aimed at securing large Enterprise customers for the product in Australia. Our Enterprise customers include Winning Services, Amart Furniture, Bing Lee, Couriers By Demand, OnTime Group, Western Australia Return Recycle Renew and Designer Transport. While we will continue to focus on the Enterprise segment, we will also extend our sales and marketing efforts to target smaller and medium-sized businesses globally moving forward. In H1 FY25, we generated revenue of $3.2 million, which was a 10% increase from the prior corresponding period. We also reported positive EBITDA of $45k for the half year. The new capital raised will assist in continuing our growth and in achieving our goal of sustainable profitability. I would like to thank all of our shareholders for their ongoing support”.
Motley Fool contributor Lianne Eastty 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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