Locate Technologies Raises $1.45M, Eyes Bitcoin Treasury for Growth
Locate Technologies has secured $1.45 million through a share placement and established a $2 million At-the-Market facility to boost financial flexibility, while unveiling a strategic plan to hold Bitcoin as part of its treasury management.
- Completed $1.45 million placement at 7 cents per share
- Secured $2 million At-the-Market (ATM) facility with Novus Capital
- Agreed to cancel 19 million warrants held by Pure Asset Management
- Plans to hold Bitcoin as a long-term strategic treasury asset
- Welcomed new investors including Rob Keldoulis to the register
Strengthening the Balance Sheet
Locate Technologies Limited (ASX: LOC), a player in the logistics technology sector, has taken decisive steps to bolster its financial position. The company announced a successful placement raising $1.45 million at 7 cents per share, backed by wholesale investors aligned with its long-term vision. This capital injection aims to support the growth of its delivery platforms, Zoom2u and Locate2u, which leverage AI and SaaS technology to optimise last-mile delivery operations.
Complementing the placement, Locate Technologies has secured a $2 million At-the-Market (ATM) facility with Novus Capital. This facility offers the company flexible, opportunistic access to equity funding without the disruption of large, fixed-price placements. The ATM allows the company to issue shares progressively, maintaining control over timing and pricing, which is particularly advantageous in volatile market conditions.
Simplifying Capital Structure and New Investors
In a move to streamline its capital structure, Locate Technologies has agreed to cancel 19 million warrants previously issued to Pure Asset Management. This cancellation will be settled through the issuance of approximately 7.5 million new shares, pending shareholder approval. Post-transaction, Pure will hold about 3.3% of the company’s issued capital, marking its transition to a significant shareholder.
The company also welcomed new investors, including Rob Keldoulis, founder of the proprietary trading firm Vivcourt, signaling growing confidence from sophisticated market participants. The involvement of such investors could provide strategic benefits beyond capital, potentially aiding Locate Technologies’ expansion ambitions.
Innovative Treasury Management with Bitcoin
Perhaps the most intriguing aspect of Locate Technologies’ announcement is its plan to hold excess cash in Bitcoin. CEO Steve Orenstein emphasized the company’s intention to build a long-term strategic holding in the cryptocurrency, viewing it as a potential enabler for future acquisitions and global growth initiatives. This approach reflects a forward-looking capital allocation strategy that aligns shareholder value creation with emerging asset classes.
Orenstein acknowledged that Bitcoin is a complex and sometimes controversial asset, encouraging shareholders to educate themselves on its risks and benefits. The company commits to transparency and will provide updates in line with its Treasury Management Policy and ASX disclosure requirements should it make material Bitcoin acquisitions.
Looking Ahead
To further engage with investors, the CEO will host a live podcast to discuss the announcement in detail, signaling a commitment to open communication. As Locate Technologies strengthens its financial foundation and explores innovative treasury strategies, the market will be watching closely to see how these moves translate into operational growth and shareholder returns.
Bottom Line?
Locate Technologies is reshaping its financial strategy with flexible capital tools and a bold Bitcoin treasury plan, setting the stage for its next growth phase.
Questions in the middle?
- How will Locate Technologies’ Bitcoin holdings impact its financial performance and risk profile?
- What are the terms and potential triggers for the use of the $2 million ATM facility?
- How will the warrant cancellation and new share issuance affect shareholder dilution and control?
