Crowd Media’s Talking Head AI tech set to benefit from $2.1 million fundraiser
Crowd Media will undertake a large capital raise as it works to advance its Talking Head platform, sales, marketing and working capital.
Artificial intelligence company Crowd Media (ASX:CM8) has announced it has received firm commitments to raise $2,100,000 (before costs) via a share placement to institutional, sophisticated and professional investors.
The capital raise will take place in two tranches. Tranche 1 of the placement comprises 50 million fully paid shares and will fall within the company’s 10% placement capacity
The shares are to be issued at 3 cents/share representing a 10.18% discount to Crowd’s 15-day VWAP with 50 million attaching options. The company will apply for listings of the options later, subject to ASX criteria being met.
Tranche 2 of the placement comprises 20 million shares and 20 million options will be issued subject to shareholder approval at a general meeting expected in July.
Crowd’s directors have agreed to subscribe for 10 million fully paid shares and 10 million options (up to $300,000), subject to shareholder approval on the same terms and conditions.
A further 10 million new Shares at 3 cents/share will be issued to Roger and Erica Blake to raise $300,000, with attaching options on a 1:1 basis exercisable at 6 cents expiring two years from the issue date.
The Blakes are related parties of Crowd Media for the purposes of the ASX listing rules as they are the parents of non- executive director Matthew Blake.
EverBlu acted as lead manager to the placement and will receive a 6% fee and 42.5 million broker options exercisable at 6 cents expiring 2 years from the issue date. The broker options will be issued under ASX Listing Rule 7.1.
Crowd said funds from the capital raise will be used for further development of its Talking Head platform.
The company will also use the funding for sales and marketing along with working capital.
Crowd recently appointed Netherlands-based Sytze Voulon as its new non-executive chairman.
Voulon, who has been on the board since September as a non-executive director, has led international businesses across several industries and geographies, orchestrating their building, scaling, and transformation.
His most recent role was the CEO of Synlab Analytics & Services (SAS), a division of Synlab – Europe’s number one medical diagnostic service provider.
The company is now working on a Proof of Concept (POC) which will focus on leveraging CM8’s Talking Head platform to apply “conversational AI” to the media search sector.
This article was developed in collaboration with Crowd Media, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.