HITIQ Limited (ASX: HIQ), a developer of concussion management and athlete safety technology for sport, clinical, and research applications worldwide, has announced a private placement set to raise A$1.4 million before costs. The company, which combines smart mouthguards and analytics platforms to deliver data-driven safety solutions, has received firm commitments from professional and sophisticated investors for the two-tranche placement.
The placement involves the issuance of 200 million new fully paid ordinary shares at an issue price of A$0.007 per share. Accompanying these shares will be one unlisted free attaching option for every placement share, exercisable at A$0.007 and expiring on 30 June 2027. Upon their exercise, holders will receive one ordinary share and one further piggyback option for nil consideration, exercisable at A$0.007 and expiring on 30 June 2029. The issuance of these New Options and Piggyback Options requires shareholder approval under ASX Listing Rule 7.1.
The capital raising is structured into two tranches. Tranche 1 will see the company issue 180 million new shares at A$0.007 each, raising A$1.26 million. These shares will be issued utilising the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Tranche 2, contingent on obtaining shareholder approval, proposes an additional issuance of approximately 20 million new shares at the same price, raising an additional A$140,000.
Funds generated from the placement are earmarked to fortify HITIQ’s balance sheet and working capital position. Additionally, the capital will support key growth initiatives, including expansion, commercialisation efforts, and ongoing development activities, aligning with the company’s FY27 operating plan. SP Corporate Advisory Pty Ltd and Erity Capital Pty Ltd acted as Joint Lead Managers for the placement and will receive New Options equal to 30% of those issued under the placement as partial consideration for their services.
