News: DataDot Technology raising funds to boost sales

DataDot Technology (ASX:DDT) is raising up to $3.03 million to increase sales capability for its theft deterrent and asset identification technologies in Australia and the U.S.

This consists of a $1.89 million private placement of shares priced at $0.027 each to professional and sophisticated investors, a share purchase plan capped at $1 million and the issue of 5 million shares to executive chairman Bruce Rathie.

Proceeds from the capital raising will be used to finance:

- Additional sales capability for industrial DataDotDNA and DataTraceDNA products in the US;
- Additional sales capability for DataDotDNA products in Australia, targeting the industrial and marine sectors; and
- Further development of DataDot Live for deployment in the insurance sector.

The private placement of 70 million shares represents 10.92% of DataDot’s issued capital while shareholder approval will be sought at the annual general meeting for the issue of shares to Rathie.

DataDot’s technology works by marking each asset with a unique and individual code.

This code is then recorded on a secure database and matched with other asset and ownership identifiers. In some cases the code is the primary manufacturer's identifier – for example a car’s Vehicle Identification Number.

DataDotDNA uses tiny polymer or metal discs that can be brushed or sprayed onto assets and read with a simple magnifying device. This is used to deter and prevent theft.

DataTraceDNA uses forensic tracers that bond to the molecular structure of the host material.

These are detectable in very small concentrations by a sophisticated smart reader developed by CSIRO and DataDot and can withstand explosions, fire and heat.

DataDot reported revenue of $7.2 million in the year ended 30 June 2014 and is budgeting for a return to profitability during 2015.

DataDot has a market cap. of $19 million and $2 million in cash at hand as at 31 July 2014.