- Bitcoin will become a strategic part of Locate Technologies’ treasury, using surplus cash to build a long-term holding.
- Bitcoin investments aim to support future acquisitions and global expansion while aligning with evolving digital asset trends.
Capital Raise and ATM Facility Strengthen Financial Flexibility
Locate Technologies (ASX: LOC) has successfully raised $1.45 million through a strategic placement to wholesale investors, priced at $0.07 per share. This funding round will help support the company’s ongoing operations and future growth. In addition to the placement, Locate has secured a $2 million At-The-Market (ATM) facility with Novus Capital. This facility provides the flexibility to raise capital in smaller, market-aligned tranches, minimizing price disruption and offering control over funding terms.
Bitcoin Enters the Treasury Strategy
A notable aspect of the funding announcement is Locate Technologies’ intention to invest excess cash—beyond working capital needs—into Bitcoin. CEO and founder Steve Orenstein acknowledged that while some investors may be cautious about Bitcoin, the company is committed to transparency and will report any significant crypto acquisitions under its Treasury Management Policy and ASX disclosure rules. The move suggests a forward-looking strategy to align with digital asset trends while possibly enhancing capital reserves for future acquisitions and global expansion.
Capital Structure Streamlined via Warrant Cancellation
As part of the broader capital strategy, Locate Technologies has also agreed to cancel 19 million previously issued warrants held by Pure Asset Management. The cancellation, valued at $527,604, will be settled through new share issuance—pending shareholder approval. This simplification of the company’s capital structure is expected to enhance investor confidence and operational clarity.
Participation and Advisory Details
The share placement involved the issuance of 20,714,286 new shares, mainly to sophisticated and professional investors. PKN Consulting Pty Ltd served as corporate advisor for the raise and will receive 828,571 shares as a 4% capital raising fee. Following the completion of these transactions, Pure Asset Management is set to hold around 3.3% of Locate Technologies’ issued capital.
Locate Technologies’ recent funding activity signals an assertive financial and strategic shift. With the inclusion of BTC as part of its treasury strategy and the addition of a flexible ATM facility, the company is positioning itself for both stability and innovation as it looks to scale operations and explore acquisition opportunities globally.
