LBT Innovations placement raises $7m

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LBT Innovations (ASX:LBT), a company focused on medical technology automation using artificial intelligence, has received commitments totalling approximately $7 million for new fully paid ordinary shares in the company at $0.15 per share.

The company said the placement was targeted to raise $6-$7 million and was oversubscribed. It also said that, as a result of the placement, the company has welcomed a number of new institutional and sophisticated investors as shareholders.

"The Company also reserved the right to accept oversubscriptions in the Placement and is currently in negotiations with a strategic investor to subscribe for up to an additional $0.4 million under the Placement with an expectation that this subscription will be confirmed prior to the second tranche," it said.

All the company's directors together with members of senior management have committed to subscribe for over $0.5 million of placement shares. The allotment to directors is subject to shareholder approval.

The company said it estimates that, with the recently announced $4 million funding facility from the South Australian Government and the its estimated sales, $6.5 million of additional funding is required to reach cashflow breakeven.

It confirmed it intends to use the proceeds of the placement to fund the commercial launch and development of its APAS technology and product extensions, working capital and costs associated with the placement. PAC Partners and Hawkesbury Partners acted as joint lead managers for the placement.