HITIQ Limited (ASX: HIQ) has announced a private placement aiming to raise A$1.4 million before costs, having secured firm commitments from professional and sophisticated investors. The company, which develops concussion management and athlete safety technology for sport, clinical, and research applications worldwide by combining smart mouthguards and analytics platforms, intends to utilise these funds to strengthen its balance sheet and support future growth initiatives. The capital raise is structured as a two-tranche placement, involving the issue of 200,000,000 new fully paid ordinary shares at an issue price of $0.007 per share.
Participants in the placement will also receive one unlisted free attaching option (New Option) for every placement share issued. These New Options will have an exercise price of A$0.007 and an expiry date of 30 June 2027. Upon their exercise, holders will receive one fully paid ordinary share and one further piggyback option for nil consideration, exercisable at $0.007 and expiring on 30 June 2029. The issuance of both New Options and Piggyback Options to placement participants is contingent on obtaining shareholder approval, in accordance with ASX Listing Rule 7.1.
The placement is divided into two tranches. Tranche 1 will see the company issue 180,000,000 new shares, raising $1.26 million, utilising its existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Tranche 2, which is subject to shareholder approval, will involve an additional 20,000,000 new shares, raising a further $140,000. The funds are primarily earmarked for strengthening HITIQ’s balance sheet and working capital position, alongside supporting growth initiatives such as expansion, commercialisation, and ongoing development activities outlined in the company’s FY27 operating plan. SP Corporate Advisory Pty Ltd and Erity Capital Pty Ltd are acting as Joint Lead Managers for the placement.
