Dotz Nano Limited has announced a A$1.2 million private placement at a discounted share price, accompanied by options, to bolster working capital and support the commercialisation of its carbon capture technology.
- A$1.2 million raised via placement of 20 million shares at 6 cents each
- Placement includes options exercisable at 10 cents, pending shareholder approval
- Funds aimed at working capital amid unresolved subscription agreement with Triton Funds
- Evolution Capital appointed lead manager, receiving shares and options as fees
- Company progressing towards commercial deployment of its direct air capture technology
Capital Raise Details
Dotz Nano Limited (ASX: DTZ), a developer of innovative climate and industrial nanotechnologies, has announced a private placement to raise A$1.2 million before costs. The placement involves issuing 20 million new fully paid ordinary shares at an issue price of 6 cents per share, representing a significant discount of 31% to the last closing price and around 20% to recent volume weighted average prices. Alongside the shares, investors will receive options exercisable at 10 cents each, subject to shareholder approval.
Strategic Purpose and Investor Support
CEO Sharon Malka expressed gratitude to existing shareholders and welcomed new investors, highlighting their recognition of the strategic value of Dotz's proprietary DotzEarth technology. The capital raise is intended to support working capital needs and provide a financial bridge as the company navigates timing uncertainties related to a standby subscription agreement with Triton Funds LP. Discussions with Triton are ongoing, with no funds yet received under that agreement.
Placement Mechanics and Governance
The placement shares will be issued under the company’s placement capacity pursuant to ASX Listing Rule 7.1A, while the issuance of placement options and broker options requires shareholder approval. Evolution Capital acted as lead manager and will receive 2 million shares and 10 million options on the same terms as the placement options as part of its fee. The settlement of the placement is expected by 26 May 2025, with shares commencing trading shortly thereafter.
Technology and Market Outlook
Dotz Nano is focused on advancing carbon management technologies, particularly direct air capture (DAC) and point source capture solutions. Their unique approach integrates novel porous sorbents with advanced process designs, aiming to deliver cost-effective carbon capture and removal. The company is positioning itself to demonstrate the real-world viability of its DAC technology, moving closer to commercial deployment amid growing global emphasis on climate solutions.
Looking Ahead
While the placement strengthens Dotz Nano’s financial footing, the unresolved timing and receipt of funds from Triton Funds inject an element of uncertainty. Shareholder approval for the options will be a key upcoming milestone, alongside monitoring the company’s progress in scaling its technology from development to commercialisation.
Bottom Line?
Dotz Nano’s capital raise provides a vital runway, but the path to commercial success hinges on resolving funding uncertainties and delivering on its carbon capture promise.
Questions in the middle?
- Will shareholder approval for the placement options be secured smoothly?
- How soon can Dotz Nano resolve the funding timing issues with Triton Funds?
- What are the next tangible milestones for commercial deployment of the DAC technology?