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    Vection Technologies (VR1) slumps on discounted placement

    By Mensholong Lepcha

    08:50, 30 November 2021

    A man looking through virtual reality glasses into the metaverse
    A man looking through virtual reality glasses into the metaverse – Photo: Alamy

    Australian software firm Vection Technologies slumped over 14% on Tuesday after the company said it raised capital by issuing new shares at a discounted price.

    Vection Technologies said it raised AUD12m ($8.5m) by issuing 60 million new shares at an issue price of AUD0.20 per share.

    The offer price represents a discount of over 28% to its last close of AUD0.28. On Tuesday, stock of the company closed 14.6% lower at AUD0.24.

    Funds to be used for metaverse deals

    Vection Technologies added that the lead manager of the placement, Evolution Capital, has been offered 32.5 million unlisted options with an exercise price of AUD0.25 and an expiry date of three years as part payment for services provided during the share placement.

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    The company said AUD10m of the funds raised will be used for mergers and acquisitions targeting the XR (extended reality) and metaverse enterprise technology sector.

    Metaverse is a virtual-reality space in which users can interact with a computer-generated environment and other users.

    Read more: What is Metaverse? The future of the internet

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
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