Embark Early Education (ASX:EVO) has secured a AU$4 million investment commitment from a US-based institutional investor through the placement of 10 million fully paid ordinary shares at AU$0.40 each, according to a Tuesday Australian bourse filing.

The new shares will bring the company's total issued share capital to 213.7 million shares and will carry the same rights as the existing shares, per the filing.

The funds will be used to partly fund cash consideration for potential asset acquisition opportunities that are yet to be identified and to cover the transaction costs associated with the placement, the filing added.

The company's shares rose 2% in recent Tuesday trade.