The ASX-listed Linius (ASX:LNU) announced on Friday that the Kirby family investment, through a private placement, totals $500,000 for 10,000,000 ordinary shares at $0.0 5 cents per share.
The new shares will be subject to a voluntary escrow restriction for eight months from their date of issue through to the first anniversary of the company’s ASX listing.
Village Roadshow (ASX: VRL) co-executive chairman and co-CEO, Robert Kirby, said the company sees great potential for the Linius technology to impact many areas of the film industry, “from reducing production costs, potentially reducing piracy to opening up a myriad of new monetisation opportunities for content producers and broadcasters alike”.
Richardson said the company had not actively been pursuing further capital raising opportunities.
“However, when the Kirby family approached us, we saw their significant strategic value. The Kirby family has a long history of success in the film industry, and we are delighted to have a partner of their stature become a shareholder in Linius,” he said.
“We believe that the Kirby family’s connections and experience in cinema and film will be highly valuable in terms of advice and introductions to Linius, thus assisting to generate long-term shareholder value.
“The company looks forward to demonstrating its revolutionary video technology in Amsterdam on 9 September at IBC, the world’s premier broadcasting conference, and looks forward to rewarding new and existing shareholders’ faith in Linius.”
Richardson said Linius’ recent quarterly update and annual accounts showed the company is in a very good cash position, with $3.3 million in the bank and an initial low burn rate of $150,000 per month, in line with the previously released operating plan.