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ASX-listed software company LiveTiles raises $20 million in share placement

A few months on from announcing the establishment of its new Asia-Pacific headquarters in Geelong through a deal with the Victorian Government, ASX-listed software company LiveTiles has raised $20 million through a share placement.

With shares priced at $0.45 per share, the company is also set to launch a Share Purchase Plan to raise an additional $3 million from existing eligible shareholders, with the funding to go towards the company’s sales, marketing, and customer success teams.

Karl Redenbach, cofounder and CEO of LiveTiles, said, “We continue to see strong demand and excitement for our products, including our artificial intelligence offering, and our ability to continue to secure additional customers and grow revenue at a rapid pace is only limited by the resources available to pursue leads and convert additional customers.”

The raise follows LiveTiles last week having to answer questions posed by the ASX around the funding of its operations.

With LiveTiles’ quarterly report, lodged in December, showing the company had negative net operating cash flows for the quarter of $5.311 million, cash at the end of the quarter of $7.92 million, and estimated cash outflows for this quarter of $6.02 million, the ASX raised concern about whether LiveTiles would have sufficient cash to fund its operations for the next two quarters.

LiveTiles responded that it had a “number of options” available to fund ongoing operations, including a capital raising, reducing expenditure, and increasing revenue, also noting that it received $2.1 million in government grant funding in January.

The company last raised $11 million via a share placement last August, with 61.1 million shares issued at the time at $0.18 per share. The raise also saw an investment of $400,000 from Redenbach, cofounder Peter Nguyen-Brown, non-executive chairman Andrew Gray, and non-executive director Andy McKeon.

LiveTiles isn’t the only software company to have questions asked of it by the ASX, with fellow Victorian outfit GetSwift’s shares still suspended after the ASX questioned various contracts and related revenue estimates the company had announced to the market.

GetSwift requested a trading halt in late January as it prepared its responses. With GetSwift and the ASX then going back and forth, GetSwift most recently asked for its shares to remain suspended as consulting firm PwC reviews its market statements and disclosure practices.

Image: Karl Redenbach. Source: Supplied.

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