ActivEX’s 23.8% Discounted Placement Sparks Dilution Concerns

Capital Injection Through Placement

ActivEX Limited, a technology company listed on the ASX, has announced a successful capital raise of $800,000 through a placement of 50 million fully paid ordinary shares. The shares were issued to True Creation Limited at a price of $0.016 each, representing a discount of nearly 24% compared to the closing price on 6 October 2025.

This placement accounts for approximately 18.83% of the company's enlarged issued share capital, signaling a notable shift in the shareholder structure. The discounted pricing reflects a common approach in capital raising to incentivize investors while balancing dilution concerns for existing shareholders.

Strategic Use of Funds

The funds raised are intended to support ActivEX’s working capital needs. While the announcement does not provide a detailed breakdown, this injection is likely to help the company manage operational expenses, invest in ongoing projects, or shore up its balance sheet amid competitive pressures in the software sector.

Issuance of the placement shares is expected to be completed by 15 October 2025, with the company applying for their listing on the ASX shortly thereafter. This timeline suggests a swift execution aimed at strengthening the company’s financial position without delay.

Market and Shareholder Implications

While the discount on the placement shares may raise questions among existing investors about dilution and valuation, the capital raise could provide ActivEX with the necessary runway to pursue growth or stabilize operations. The involvement of True Creation Limited as a significant new shareholder could also hint at potential strategic partnerships or support.

Investors will be watching closely to see how the company deploys these funds and whether this capital raise translates into improved operational performance or market positioning in the coming quarters.