News: DataDot Technology raises $2.72 million for U.S. expansion

DataDot Technologgy (ASX:DDT) has closed a fund raising initiative at an issue price of $0.027.

The aggregate capital raised under the share purchase plan and the share placement to sophisticated and professional investors during October is $2.726 million.

Funds raised are to be used to finance additional sales capability for industrial DataDotDNA and DataTraceDNA products in the US; and additional sales capability for DataDotDNA products in Australia, targeting the industrial and marine sectors.

Further development of DataDot Live will also be undertaken for deployment in the insurance sector.

DataDot has traded profitably during the first quarter of 2015 however the investment in expansion activities will negatively impact earnings until offsetting new revenue is brought online.

The company has also lodged its 2014 tax return and expects an R&D rebate payment of more than $400,000 by calendar year end.

In July, the company revealed that Con Edison had begun a program to prevent copper theft using DataDotDNA.

Con Edison is a subsidiary of Consolidated Edison, Inc. (NYSE:ED), one of the largest energy companies in the US, with $12 billion in annual revenues and $41 billion in assets.