The Sensen Networks Ltd (ASX: SNS) share price has been up and down this morning after the software company announced a successful placement.
The company's shares opened 15% lower at 15 cents. However, at the time of writing, the Sensen share price has since lifted 2.86% to trade at 18 cents.
Why is the Sensen share price up today?
In today's release, Sensen advised it has raised $7.15 million from professional and sophisticated investors through a placement. The issuance of 57,200,000 new ordinary shares at a price of 12.5 cents each were allotted to participating shareholders yesterday. Sensen noted that the offer price reflected a 9.2% discount on the 30-day volume weighted average price of its shares.
The moneys raised from the placement will be used to support a variety of initiatives. The company will seek to recruit new personnel for key executive roles such as sales and marketing, and project management.
In addition, Sensen will also use the new capital to fund its strategic business objectives to generate revenue and fine-tune its global delivery capabilities. Some of the funds will be allocated to its R&D department to ensure the company maintains a competitive advantage.
What did the CEO have to say?
Commenting on the placement, Sensen CEO Dr Subhash Challa said:
Following a strong 2020 growth year for the company despite the global effects of COVID-19, this capital raising means we are now extremely well positioned to execute the company's aggressive expansion plans in 2021 and beyond.
Sensen is delighted to welcome global equities manager VGI Partners to the company. The fund's focus on investing in businesses with a competitive advantage for the long-term clearly aligns with SenSen's strategic plans.
Similarly, we are delighted to enter a new phase of institutional and sophisticated investor support for the company as we aggressively pursue expansion in our target markets and rapidly grow our revenue profile especially in the US.
A year in review for the Sensen share price
The Sensen share price has gone through peaks and troughs during the past 12 months. Reaching as low as 5.5 cents in March, the company's shares have stormed higher only in the past few days.
Based on the current Sensen share price, the company commands a market capitalisation of around $82.9 million.
