ClearVue Technologies announced it has raised approximately $7.5 million through an institutional placement to advance its commercialisation efforts in the U.S. and support global operations.
The placement will see the issuance of 23.4 million fully paid ordinary shares at A$0.32 per share, representing a 21 per cent discount to the company’s last closing price on 14 October 2024, and a 24 per cent discount to its 15-day volume-weighted average price.
“A primary objective for the board and management has been to introduce the company to the institutional investment market,” said ClearVue CEO Martin Deil.
“The current capital raise has successfully expanded our registry to include a diverse mix of new institutional and professional investors, who constituted the majority of the placement, with a smaller portion coming from sophisticated investors.”
Deil noted that many of the new institutional investors are based in Hong Kong, a key market for ClearVue in Asia.
“The Hong Kong market is a key focus for the company, as evidenced by our engagement with the Hong Kong government through the EMSD solar glass study announced in March 2023,” he said.
“The study is continuing but importantly has led to several commercial discussions that we anticipate will convert to sales in the future.”
The funds will be allocated towards expanding the company’s operations in the United States, including infrastructure and staffing to support its growing sales pipeline.
Additionally, ClearVue said it aims to invest in systems and inventory to strengthen global sales capabilities.
“A secondary objective through this raise has been to ensure the company is funded for the next steps in its commercialisation journey,” Deil added. “Funds raised will support execution of our growing sales pipeline through additional staff and infrastructure in the US.”
ClearVue also said it plans to use a portion of the capital to develop software systems, including an ERP system for global product delivery, quality assurance, and data collection from completed projects.
These systems will enable the company to track energy and carbon performance, positioning it to benefit from future carbon credit regimes.
The placement builds on ClearVue’s earlier capital raise, which supported the development and testing of its Gen-2 products and led to several early projects, including collaborations with CFMEU in Melbourne and Prefabulous in New South Wales.
Bell Potter Securities Limited acted as the lead manager for the placement. Settlement of the new shares is scheduled for October 22, with the shares expected to be allotted on 23 October..
The issue will utilise the company’s existing ASX Listing Rule 7.1 placement capacity, accounting for approximately 9.7 per cent of ClearVue’s current shares on issue.
The newly issued shares will rank equally with the company’s existing fully paid ordinary shares.
“We are also pleased to have completed the raise despite real or perceived market uncertainties, including those surrounding the upcoming U.S. election in November,” Deil concluded.
