Linius Funded with up to $3 Million Capital Raising

Linius Technologies Limited (ASX:LNU) (‘Linius’ or ‘the Company’) – the only cloud-based solution that unlocks the value of video archives with immersive, deeply personalized viewer experiences via its Linius Media Solutions portfolio – is pleased to announce a capital raising initiative comprising binding commitments of $800,000 under a convertible note facility (Note Facility) and a placement of new fully paid ordinary shares in the Company (Placement) to raise $700,000 for an aggregate raising of up to $1.5 million before costs, in each case in part subject to shareholder approvals.

Highlights:

• Linius Media Solutions now proven with global tier-1 clients across most major sports
• New and existing partnerships with industry leaders Prime Focus, Magnifi, and Avid unlock significant scale
• Technology is scalable across the US$75 billion sports broadcasting market
• As a result the Company has secured $1.5 million in funding (before costs) via an equity placement from professional and sophisticated investors and commitments under a convertible note facility, partly subject to shareholder approvals
• Linius has also entered into a $1.5 million standby equity facility with Eli Capital that provides the Company with full control over the facility and flexibility in strengthening its balance sheet as part of its funding strategy
• Linius initiated cost reductions of nearly $1m annually, following completion of its latest product, Captivate
• Proceeds from the capital raising, combined with new products, partnerships, and a reduced cost base will accelerate Linius’ growth towards cashflow break-even in early FY26

In addition to the Note Facility and Placement, the Company has entered into a standby equity facility with Eli Capital Pty Ltd (Eli Capital) with up to $1.5 million worth of standby equity capital available to the Company at its discretion over the next 18 months (Equity Facility).

The aggregate of this capital raising initiative is $3 million (before costs) subject to shareholder approval, which given the scalable nature of existing Linius solutions provides the Company with significant runway to achieve its objective of cashflow break-even.

Building of deal momentum

Linius has materially penetrated the sports market with long term contracts working with over 100,000 hours of content from 15 different sporting codes (most recently in American Football), 40 different sporting federations, in all three of its target geographies. Linius Media Solutions has gained substantial validation and accelerating momentum from deployments with tier-1 customers including IMG, Cricket Australia, Inverleigh Media, and more. In FY24, the Company entered the US market with deployments for the North American Hockey League and USA Hockey, plus the Lone Star and Peach Belt Conferences in the US college sports market.

New Partners

This validation has led to partnerships with leading industry technology providers. In Q1 FY25, Linius entered into new partnership with Prime Focus Technologies and other global system integrators, in addition to existing partnerships with Magnifi and Avid.

Prime Focus is the world’s largest independent integrated media services company with customers including Walt Disney-owned Star TV, Channel 4, ITV, Warner Bros. Discovery, Paramount, Disney+ Hotstar, BCCI, Amazon, MGM Studios and more. PFT will resell Linius’ AI-powered automated highlights and video personalisation technology to their existing and new sports and broadcast customers.

These industry leaders (Prime Focus, Avid and Magnifi) recognise the innovation and value in the Linius platform and products, leading them to partner with Linius to bring value to their current and future customers and opening significant scale and revenue growth for Linius.

New technology to increase deal size

Linius has also released its new fan engagement product called Captivate, based on its prior successes of creating new revenues for broadcasters & sports federations through the delivery of personalized video experiences. Captivate addresses a much larger potential market opportunity for Linius and its partners – direct engagement by the viewer/fan – unlocking the value of near-live highlights and archive content.

Cost Reductions

With development of Captivate complete and a more scalable go-to-market and deployment model with partners now in place, Linius has recently enacted cost reductions of nearly $1m annually across the business. The Company is confident in its ability to rapidly grow revenue and support new customers within this cost structure.

Significant new funding

As a consequence of this market validation, new products, partnerships, reduced cost base, and tight go-to-market plan, the Company has secured this significant funding package from professional and sophisticated investors who see the long term value of Linius and are supporting the Company with this capital raising initiative.

Proceeds from the capital raising will be used to execute Linius’ go to market plan towards cashflow break-even, accelerate near-term revenue growth through further penetration of the US and global sports market, and scale rapidly through execution of key partnerships including Magnifi and Avid.

Linius Non-Executive Chairman, Gerard Bongiorno, said, “The Linius board and management are delighted with this capital raising initiative as it will allow the company to focus on the execution of its business plan towards cashflow breakeven in early FY26. It will facilitate accelerated revenue from existing opportunities within global sports federations, broadcasters, and rights holders and accelerated growth enabled by our recently announced industry partnerships, with no need for additional costs.

“The structure of these facilities provides the best available outcome for shareholders, providing a long-term runway for the business while minimizing dilution. The company now has access to funding to capitalise on its significant near-term growth opportunities and, importantly, the raise allows management to drive the company towards cashflow breakeven.

“We want to thank our existing and new investors that supported this raise for their commitment and belief in the Linius business and team.”

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