The company (ASX:DUB) says the funding will be used to expand operations, particularly in the US and Europe.
According to Dubber’s statement to the ASX, demand has increased for the company’s services in both the US and European markets as a result of industry trends and regulatory conditions.
The capital raising follows Dubber’s recently announced agreements with AT&T, the US-based telecommunications provider, as well as BroadSoft, a global Unified Communications (UC) provider. Dubber has said resources will be deployed to support these agreements and other initiatives as it seeks to grow its business globally.
Under the placement, the new shares are expected to be issued on 22 September.
Morgans Corporate Limited acted as lead manager for the placement which will raise $7 million, before costs.
The new shares issued under the placement will be issued pursuant to the company’s 15% placement capacity under ASX Listing Rule 7.1 (10,400,000 shares) and 10% placement capacity under ASX Listing Rule 7.1A (9,600,000).