Embark Early Education (ASX:EVO) received firm commitments to raise AU$12 million via a placement of about 20 million ordinary shares to professional and sophisticated investors at AU$0.60 apiece, according to a Monday Australian bourse filing.

The offer price represents a 6.7% discount to the stock's 15-day volume weighted average price, the filing said.

Proceeds will be used to fund the cash consideration under the takeover bid for the shares it does not already own in Mayfield Childcare (ASX:MFD) and to cover placement costs, the filing added.

Shares of the company fell past 3% in recent Monday trade.