OpenLearning (ASX: OLL), an AI powered learning management system that provides a full suite of tools for online learning, course creation and delivery, has announced it successfully raised $2.6 million through a placement to institutional, sophisticated, and professional investors. The placement involved the issue of 118,181,813 new ordinary fully paid shares at an issue price of 2.2 cents per share, representing a 1% discount to the 15-day volume-weighted average price (VWAP). The company said the placement was strongly supported by existing and new investors.
The funds raised will be used to accelerate OpenLearning’s growth initiatives, focusing on expansion into new markets, including the Philippines and Brazil. Further investment will be made in advancing product development and supporting general working capital requirements. Education Centre of Australia (ECA), OpenLearning’s major shareholder, subscribed to approximately $1.25 million worth of the new shares, demonstrating strong support for the capital raise. ECA’s subscription is subject to shareholder approval at an upcoming General Meeting.
Adam Brimo, OpenLearning CEO and Managing Director, expressed gratitude to institutional investors for their confidence in the company. He noted that the capital raise positions the company to achieve cash-flow breakeven. With the fresh capital from the placement and the proposed conversion of all outstanding debt into equity, OpenLearning is targeting to achieve cash flow breakeven within 18 months. The company also reported strong traction in its SaaS LMS business, achieving 14 consecutive quarters of year-on-year SaaS revenue growth.
OpenLearning’s expansion strategy prioritises markets rapidly shifting to SaaS-based LMS solutions. With a solid foundation in Australia and Malaysia, the company is scaling across Southeast Asia and has laid groundwork in Brazil. Gujarat University in India has also commenced a pilot of the OpenLearning LMS. MST Financial Services Pty Ltd acted as Lead Manager to the Placement.
