Next-gen entertainment company TV2U (ASX:TV2) has bagged $1.94 million in a placement – one that had to be trimmed back due to demand.
The ASX-listed company told its shareholders today that it would have $3.1 million in the bank after the capital raise had gone through, but it had bagged $1.94 million as part of a placement to sophisticated and institutional shareholders.
It said the offer for 3c per share needed to be scaled back as a function of demand.
The company will issue 64.8 million new shares and 32.4 million options, and existing shareholders will get the chance to buy-in at the same rate – with TV2 launching a one-for-four offer of options.
TV2 said the cash would go towards new hires for its research and development team, which it said would allow it to “more rapidly pursue a number of short-term opportunities” on the company’s horizon.
Earlier this week TV2U unveiled a partnership with leading B2B telecommunications provider OM Telecom to sell its over-the-top entertainment product to OMT’s customers.
OMT has a customer base of over 200,000, through partnerships with 12 Internet Service Providers.
It said revenue from the deal would be split equally between the two parties.
The deal effectively allows the two parties to launch a package for the market which bundles their respective telecommunications and OTT entertainment solutions together – increasing the carrot for potential buyers.
About TV2U (ASX:TV2)
TV2 is building an over-the-top entertainment solution, encompassing content such as karaoke, international television on demand, subscription video on demand, and gaming.
This OTT solution can be sold on a ‘white label’ basis to telecommunications clients for them to offer to potential and existing customers.
TV2’s difference in the marketplace surrounds its analytics platform.
It is able to gather unique real time viewership analytics, which it can then package up for advertisers to serve highly-targeted advertising to end-users.