The Dotz Nano Ltd (ASX: DTZ) share price fell as much as 19.23% today, reaching of low of 21 cents before recovering to 24 cents at today's close. This came 1 week after the company announced a placement to institutional and sophisticated investors.
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What were the details of the placement?
Dotz Nano raised $7.1 million via the placement. The company sold 28.27 million shares at an issue price of 25 cents per share. The placement was announced on 19 October, and at the time was a discount of 13.8% to the last closing share price. The shares issued under the placement will begin trading on Wednesday 28 October 2020.
According to the company, the proceeds of the placement will be used to fulfil its 4 existing PPE authentication contracts in addition to increasing production capacity, establishing new distribution networks, engaging in sales and marketing and establishing proof of concepts for new products including commercialisation of Dotz's surface sanitation and on site virus detection.
A closer look at Dotz Nano
Dotz Nano is a technology company that specialises in carbon-based materials used for tracing, anti-counterfeiting and product liability solutions. Dotz Nano has been listed on the ASX since 2016.
Earlier this month, Dotz Nano announced that it had secured an agreement for the authentication of medical gowns worth US$255,000. The agreement was with Hong Kong based Universal Exports Group and followed a $1 million agreement with the same customer to authenticate medical face masks.
Also in October, Dotz Nano gave a presentation at the Market Eye TechOpps virtual conference where it informed investors that $2.2 trillion of products are counterfeited, creating a large opportunity for Dotz Nano's authentication technology.
About the Dotz Nano share price
The Dotz Nano share price is up 627% from its 52-week low of 3.3 cents and has risen more than 215% since the beginning of the year. The Dotz Nano share price is up 458% since this time last year.
