Echo IQ (ASX:EIQ) received binding commitments to raise AU$17.3 million through the issue of 57.7 million shares at AU$0.30 apiece, according to a Wednesday filing with the Australian bourse.

Company directors agreed to subscribe for 1 million shares in the placement, subject to shareholder approval, the filing said.

The proceeds will be used for ongoing deployment of EchoSolv AS in the US, continuing the company's technology suite development, and general working capital and offer costs, per the filing.

Shares fell nearly 6% in afternoon trade Wednesday.