finnCap, conducted the placing with institutional investors at a price of 4p/share
Companies: Seeing Machines Limited
AIM-listed tech firm Seeing Machines has said it has conditionally raised £15m through a placing to enable it to support the "ongoing commercialisation" of its FOVIO automative business.
The proceeds will provide growth capital to the firm, enabling it to continue the ongoing commercialisation of its technology, including the FOVIO automotive business.
SEE's corporate broker, finnCap, conducted the placing with institutional investors at a price of 4p/share. SEE also confirmed it was providing an opportunity to "certain existing shareholders" to raise a further £2m at the placing price.
In a note published on Tuesday, finnCap said the firm had completed the placing to fund and benefit fully from the automotive OEM rollout of its leading-edge technology, ensuring investors will retain full ownership and control of the IP.
Analyst Lorne Daniel said that markets were continuing to develop, albeit slowly, and stressed there was an "urgent" need for Seeing Machines technology:
"CAT sales in the off-road markets are steadily building, while fleet sales of Guardian v.1 have been sluggish but are set to be boosted by several large deals under negotiation and routes to market being established. Meanwhile, sizeable new markets are being developed in the global rail and air transport industries...
Recent incidents highlight the urgent need for this technology, including the conviction of a trucker who killed a family on the A34 while distracted by his mobile phone and the crash of a Croydon tram whose driver appears to have lost concentration or consciousness."
Seeing Machines' Chairman Terry Winters said the Board was "delighted" with the level of support shown by investors in the placing and subscription:
"We are seeing strong demand for our advanced Driver Monitoring Systems from global car makers and from their tier 1 suppliers."
The company had considered spinning out its FOVIO automotive business, but Mr. Winters confirmed that management has now decided against the move:
"... [The Board] resolved it is in the best interests of shareholders to retain full ownership. All our intellectual property including data, our SiP Driver Monitoring System chip and all our key staff will remain available to all Seeing Machines' target industries."
The company's share price fell 12% on the news, reversing the 12% gain it had made since Thursday last week.
The fundraising is conditional upon shareholder approval.
