HITIQ Secures $3.6M to Accelerate Consumer Market Pivot and US Expansion

Capital Raising Overview

HITIQ Ltd (ASX: HIQ), a technology company focused on impact analytics, has announced a significant capital raising initiative aimed at supporting its strategic pivot towards the consumer market. The company has completed a placement raising approximately $680,000 through the issue of over 30.9 million shares at 2.2 cents each, representing a 12% discount to the closing price on 24 April 2025 and a 28.1% discount to the 30-day volume weighted average price (VWAP). Each placement share comes with an attaching option exercisable at the same price, expiring in December 2028.

In tandem with the placement, HITIQ is launching a non-renounceable rights issue to eligible shareholders across Australia, New Zealand, Germany, Hong Kong, and Singapore. This offer aims to raise up to $2.92 million before costs by issuing up to 132.8 million new shares on the same terms as the placement, including one option for every two shares subscribed. The rights issue is partially underwritten to $1.2 million by GBA Capital Pty Ltd, with the Board also committing $67,000 in sub-underwriting, signaling strong insider confidence.

Strategic Use of Funds

The funds raised will be strategically deployed to accelerate HITIQ’s expansion and product development. Key allocations include $810,000 to enhance manufacturing capacity, $900,000 to support US market expansion, and $540,000 towards product enhancement. Additional investments will be made in business development, marketing, continued research and development, and working capital to sustain operations and support the capital raising costs.

Non-Executive Chairman Earl Eddings highlighted the significance of the placement, stating that attracting new sophisticated investors amid challenging capital markets underscores the long-term potential HITIQ offers. The capital injection is expected to underpin the company’s pivot to the growing consumer market, complementing its existing elite market focus.

Offer Timetable and Market Impact

The rights issue will open on 23 May 2025 and close on 6 June 2025, with new shares and options anticipated to be issued by mid-June. Shareholders who fully subscribe to their entitlements will have the opportunity to participate in a top-up offer for additional shares at the same price, further enhancing capital raised and shareholder participation.

While the capital raising dilutes existing shareholdings, the partial underwriting and director participation provide a buffer against shortfall risk. The market will be watching closely how the company executes its consumer market pivot and whether the expanded capital base translates into accelerated growth and revenue diversification.

Looking Ahead

HITIQ’s move to bolster its balance sheet through this dual capital raise reflects a proactive approach to funding growth initiatives in a competitive technology landscape. The company’s focus on expanding manufacturing and US presence, alongside product and R&D enhancements, positions it to capture emerging opportunities in impact analytics for consumer markets.