Locate Technologies Secures $1.45M, Eyes Bitcoin

Locate Technologies (ASX: LOC) announced a strategic capital raise of $1.45 million through a placement to wholesale investors at $0.07 per share. The company also established a $2 million At-The-Market (ATM) facility with Novus Capital, providing flexibility for future capital raises. A key aspect of the raise is Locate’s intention to allocate cash exceeding working capital requirements to Bitcoin, aiming to build a strategic, long-term holding to potentially support acquisitions and global growth initiatives. Founder and CEO Steve Orenstein acknowledged that some shareholders might be unfamiliar or cautious about Bitcoin but emphasized the company’s commitment to transparency. The company will provide updates on material Bitcoin acquisitions in accordance with its Treasury Management Policy and ASX disclosure obligations. Furthermore, Locate Technologies agreed to cancel 19 million warrants issued to Pure Asset Management for $527,604, settled via new share issuance, subject to shareholder approval. This move simplifies the capital structure. The placement involves issuing 20,714,286 shares at $0.07 each, supported by sophisticated and professional investors. PKN Consulting Pty Ltd, acting as the corporate advisor, will receive 828,571 shares at $0.07 per share as a 4% capital raising fee. The ATM facility with Novus Capital allows for progressive capital raising by issuing new shares at prevailing market prices, reducing potential market disruption. Locate Technologies retains full control over the timing, volume, and minimum price of any sales under the facility. Post-completion of these transactions, Pure will hold approximately 3.3% of the company’s issued capital.