ION VIDEO LTD — Capital/Financing Update 2023

Dec 14, 2023

ASX Announcement | 15 December 2023

==> picture [108 x 44] intentionally omitted <==

Linius raises $260,000 as it continues growth and customer expansion

Melbourne, Australia – 15 December 2023: Linius Technologies Limited (ASX: LNU) ( Linius or Company ) – the only cloud-based solution that unlocks the value of video archives with immersive, deeply personalized viewer experiences via its Linius Media Solutions – has received firm commitments from professional and sophisticated investors to raise $260,000, including $40,000 from Directors and their nominees, before costs ( Placement ). This placement provides the remainder of the funding originally targeted in the Share Purchase Program that closed on 1 December 2023.

The Company has materially penetrated the sports market with long term contracts and deployments for blue chip clients including IMG, Cricket Australia (CA), Inverleigh Media, New Zealand Rugby, SANZAAR Rugby, the North American Hockey League (NAHL), teams from the English Premier League and Belgian Pro League, and more. The company works with content from 15 different sporting codes, 40 different sporting federations, in all three of its target geographies – US, Asia Pacific, and Europe.

In the past 12 months, the Company made significant progress against its strategic plan to reach profitability. The Company finished FY23 with an 82% YOY increase in cash receipts. The Company started FY24 announcing in August that it already had contracts that would see billings rise to $725,000 over the next 12 months, a 49% increase over FY23.

In the first half of FY24, the company achieved major milestones in its goal to penetrate the allimportant US sports market:

• Closed and went live with its first customer US sports market with Hockey Technology Partners (HTP) for NAHL TV. The service is now available to NAHL TV subscribers and is generating recurring monthly revenue. Variable revenue share is expected to begin in Q3 FY24.

• Following the success with NAHL TV, HTP secured two additional customers for this service under a new Master Service Framework with Linius, which are now generating additional monthly recurring revenue. HTP has a pipeline of additional clients for the solution and will be expanding their offering to include Linius Whizzard for existing and new clients.

• In November, the company announced its first deal in the US Collegiate Sports market with the Peach Belt Conference (PBC). PBC will use Whizzard and Whizzard Highlights to curate and publish content to the PBC Sports Network, their existing streaming service, as well as to conference and school websites. The company estimates that the total addressable market in US college sports, which contains 1100 schools and 150 conferences, is in excess of $70m for Linius. The solution for PBC is highly repeatable in this segment and the company has a mature pipeline of opportunities with multiple conferences and schools.

Existing customers have also continued to expand in the first half of FY24.

• CA became the first customer for Whizzard Highlights, a new module for Whizzard that generates automated highlights for current and historical matches. This service is now live and generating additional monthly recurring revenue. This marks Linius’ entry into the existing large market for automated highlights with significant revenue potential.

Linius Technologies Limited (ASX: LNU) ACN 149 796 332 Level 2, 431 St Kilda Road, Melbourne VIC 3004Australia t: +61 3 8672 7186 / e: info@linius.com

==> picture [107 x 43] intentionally omitted <==

• CA are utilising Whizzard to produce a wide range of new video content for broadcast to their website, apps and FAST channel on Samsung TV’s. Recurring revenue from CA continues to grow and variable revenue is expected to begin billing in Q3 FY24.

• New Zealand Rugby was revealed as the second archive enabled through Inverleigh Media, with content actively being published to the NZR Plus website. Inverleigh is actively developing near term opportunities with new federations which will generate additional setup and recurring fees.

• In October, the company secured a multi-year renewal and expansion of its contract with its longest standing customer, Racing.com. The new agreement highlights the value of Linius Media Solutions for Racing.com, and includes Whizzard and Whizzard Highlights.

With the pending launch of Whizzard with IMG Replay and a robust pipeline of opportunities with sports federations, broadcasters, and streaming platforms in all target geographies, the company expects revenue to grow significantly in the second half of FY24.

The Placement supports further acceleration of customer acquisition and deployment as well as delivery of key product enhancements.

Proceeds from the Placement will be used for further execution of Linius’ go to market plan which sees accelerating deal closure, growing recurring revenue, further penetration of the US sports market, and entry into key segments like broadcast and college sports. This capital injection, coupled with recent financial results and continued growth in cash receipts, delivers time for management to complete the deployment of the IMG project and generate monthly recurring and variable revenue from existing customers. This plan will generate significant new revenues and place the Company in a position to rapidly improve its cash position on its path towards profitability.

Further details on the Company’s progress and near-term priorities were provided in an investor webinar on 27 November 2023 (view recording HERE), along with recent announcements.

Linius CEO, James Brennan said “I am grateful for the continued support of existing shareholders who participated in this placement and our recent SPP. The raised capital will back our near-term revenue growth from existing customers and new business development efforts.”

“This is an exciting time for Linius. The coming months will see the deployment of Whizzard within IMG Replay which will immediately increase revenue, publicly showcase the power of Linius Whizzard, and accelerate multiple opportunities in our pipeline. Inverleigh and HTP will bring onboard new end customers and generate additional revenue through our Master Services Framework agreements. We expect further penetration of the US sports market, particularly the US college sports market, whilst we will launch several exciting new fan engagement products.”

The Placement will result in the issue of 130,000,000 fully paid ordinary shares at $0.002 per share to raise $260,000, before costs, conducted within the Company’s existing Listing Rule 7.1 placement capacity for 110,000,000 shares and pursuant to LR 10.11 for 20,000,000 shares in respect of shares subscribed for by directors (and nominees), subject to shareholder approval. The issue price represents a discount of 1% to the 15-day VWAP. The shares issued under the Placement will rank equally with existing Linius fully paid ordinary shares on issue.

The Placement (excluding director participation) is scheduled to settle on 20 December 2023 with allotment on 22 December 2023.

This announcement has been approved for release to ASX by the Board of Directors of the Company.

==> picture [107 x 43] intentionally omitted <==

About Linius Technologies Limited:

Linius’ purpose is to unlock the value of the world’s video, creating immersive, deeply personalized viewing experiences. For the first time, we make it possible to find, curate, and utilize the valuable moments across vast libraries of video, enabling viewers to create an infinite amount of personalised video compilations on-the-fly, providing the most relevant content to each viewer.

Our patented Video Virtualisation Engine™ (VVE) turns big, bulky video files into lightweight, searchable data that is enriched with AI and ML, making it easy and efficient for users to find and share what matters to them. Creators and owners of video can drive greater viewing, and monetisation of their video assets.

For more on Linius Technologies, visit www.linius.com

For further information, please contact: James Brennan, CEO, +61 (0)3 8672 7186 or ir@linius.com

Follow Linius at:

LinkedIn Twitter Facebook YouTube