RemSense builds cash reserves to fast-track growth
Digital technology company RemSense Technologies (ASX: REM) will have more than $2.75 million to fast-track growth following a placement and entitlement offer.
RemSense’s core product is virtualplant, which is a photographic asset visualisation platform that enables assets to be viewed remotely anywhere, any time and from any device “via an intuitive, immersive experience”.
Virtualplant combines artificial intelligence and virtual reality to create a “visual digital twin” that can integrate with client business operations and asset management systems.
It supports the ongoing monitoring, operational control, induction and training, auditing, planning, capital upgrades, maintenance and shutdowns for staff, contractors and suppliers.
RemSense sells virtualplant as a software as a service solution.
Raising $2.75 million
Peak Asset Management is handling the raising, with $475,000 raised via a placement to its professional and sophisticated investor clients at $0.075 per share.
One option will also be issued that will be exercisable at $0.15 each on or before 15 December 2025.
A further $2.28 million will be raised via a one-for-three pro-rate entitlement offer to existing shareholders.
The entitlement offer will be based on the same $0.075 per share price with the option.
Peak will also look to place any shortfall from the entitlement issue.
Funds from the raising will be used to expand RemSense’s IBM partnership opportunities on a global basis, as well as boosting sales and marketing of virtualplant both locally and internationally.
RemSense is currently pursuing 77 opportunities in Australia, alone.
Funds will also be used for working capital to support greater volumes of work.
RemSense says its technology delivers “greater productivity” and “increased safety” at a reduced cost.
The company recently secured a contract from AGC Industries on behalf of Chevron Australia – the Australian arm of Fortune 500 company Chevron Global.
Under the deal, virtualplant scanning will be completed at additional liquified natural gas (LNG) facilities through 2023 and 2024.
RemSense estimates this contract will bring in about $2 million.