The funds will also help the company to establish dedicated on-site tier-one service provider account executives, accelerate the uptake of its "Dubber Playback" product and for other general corporate purposes.
The capital raising will result in placement of 15,107,865 new fully paid ordinary shares to institutional and sophisticated investors at an issue price of $0.42 per new share and are likely to be issued on 12 December.
After the placement, the Thorney Investment Group will become a substantial shareholder in the company.
The company plans to set up dedicated on-site account executives into tier-one service providers such as Telenor Sverige (Sweden) to speed up adoption of its services across an entire network customer base. These account executives will be assigned to client opportunities initially in North America and Europe.
Dubber chief executive Steve McGovern said: "Based on our recent customer engagements and through participation at industry events like BroadSoft Connections in San Antonio, Texas, it is clear that there is significant demand for Dubber’s services, particularly in North America.
"We believe the industry understands our native cloud philosophy and that Dubber’s Platform as a Service meets immediate deployment needs with carriers and their corporate clients."