Insights

Why the Life360 (ASX:360) share price is sinking 9% today

LIfe360’s shares are deep in the red today…
The post Why the Life360 (ASX:360) share price is sinking 9% today appeared first on The Motley Fool Australia. –

The Life360 Inc (ASX: 360) share price has returned from its trading halt and is tumbling lower.

In early trade, the mobile app maker’s shares were down as much as 9% to $12.33.

Why is the Life360 share price sinking on Thursday?

The catalyst for the weakness in the Life360 share price on Thursday has been the completion of the institutional component of its fully underwritten A$280 million capital raising.

According to the release, Life360 has raised A$88.7 million via its institutional entitlement offer and a further A$160.2 million through an institutional placement at $12.00 per new share. This represents an 11.1% discount to the Life360 share price prior to its trading halt.

Management advised that the capital raising received strong demand from both existing and new investors.

A fully underwritten retail entitlement offer, which will raise approximately A$31.1 million, will open on Tuesday 30 November.

Why is Life360 raising funds?

The proceeds from the capital raising will be used to acquire 100% of items tracking company Tile for a purchase price of up to US$170 million plus up to US$35 million in retention awards, representing a total consideration of up to US$205 million. This is the equivalent of approximately A$282.8 million.

Management notes that the combination of Life360 and Tile creates an integrated market leader in location solutions for all life stages. This enables a seamless experience for families that integrates people, pets and things.

It also highlights that Life360 will be the only vertically integrated, cross-platform solution of scale in the market and will be well-placed to take advantage of the growing location solutions category.

Life360’s Founder and CEO, Chris Hulls, commented: “We are delighted with the overwhelming institutional take up of our entitlement offer for the acquisition of Tile. We are grateful for the support of our existing shareholders, and pleased to welcome new shareholders to the register. Together they have demonstrated pleasing confidence in our vision of integrated location solutions for all life stages, enabling a seamless experience for families that integrates people, pets and things. We are excited to welcome the Tile team into the Life360 circle and look forward to working together to deliver our market leading solutions so that families can live fully.”

Are Life360’s shares in the buy zone?

The team at Morgan Stanley was pleased with the acquisition. In response, the broker retained its overweight rating and lifted its price target to $16.50.

Based on the current Life360 share price, this implies upside of ~33% over the next 12 months.

The post Why the Life360 (ASX:360) share price is sinking 9% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Life360 right now?

Before you consider Life360, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Top brokers name 3 ASX shares to buy today

Life360 (ASX:360) share price halted amid $280 million acquisition

2 excellent ASX shares brokers love

2 top ASX shares to buy according to WAM

3 ASX shares getting analysts very excited

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!