Brain Resource Ltd. secured commitments to raise A$1 million through a placement of 12.5 million new fully paid ordinary shares, mainly to institutional and sophisticated investors, at 8 cents apiece.
Staff and directors contributed A$100,000 to the raise, A$90,000 of which was contributed by directors and will be subject to shareholder approval, the Sydney company said.
The company will use proceeds to fund its operations, with a focus on growing its MyBrainSolutions business, and to hire a firm to help conduct a strategic review. Among other things, the review will allow the company to assess the potential value of its assets to a strategic acquirer.
Gleneagle Securities (Aust.) Pty. Ltd. acted as lead manager to the capital raising.
As of March 29, US$1 was equivalent to A$1.31.