Digislide, an Australian developer and manufacturer of miniaturised projectors, has secured $18 million in funding from UK-based investment group GEM Global Yield Fund Limited.
This sum represents around six times the value of Digislide's $3 million initial public offering on the Australian Securities Exchange (ASX) in August this year.
Following the announcement of the deal on Friday, Digislide's share price jumped 21.6%, finishing the day at 45 cents from an opening price of 37 cents.
Digislide aims to use these funds to ramp up manufacturing of its miniature projectors for international markets, accelerate R&D and develop distribution networks, the company told the ASX.
"The investment from GEM puts us in a much stronger position to negotiate with global brands," said Digislide CEO Luceille Outhred, in a press statement. "We've always positioned Digislide as a global company and this investment will enable a rapid response if current negotiations in the Silicon Valley, Asia and Europe come to fruition."
GEM has agreed to provide $18 million in investment funding over three years, with the amounts and timings of the draw downs to be at Digislide's discretion. In exchange, GEM receives 11 million Digislide share options; 5 million exercisable at 50 cents and 6 million exercisable at $1.
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