Sprintex Ltd (ASX:SIX) has secured $1.3 million in capital to accelerate the rollout of its fuel cell electric compressor and industrial blower ranges.
The roll-out follows high industry demand and the amount raised will fund production equipment and parts inventory for 15,000 units of e-compressors and industrial blowers per annum.
Furthermore, Sprintex plans to launch a share purchase plan (SPP) in an effort to raise an additional $500,000 at an issue price of $0.04 per share.
Sprintex expects that the raised capital, coupled with increased production levels, will contribute significantly to its annual revenues.
“More reliable revenue growth”
Sprintex managing director Jay Upton said: “We are delighted to move forward to volume production of our exciting new product ranges and particularly the wastewater aeration units, which we expect to carry the company to profitability in FY2024.
“Since recapitalising the company some three years ago, significant R&D, engineering, prototyping and testing has been undertaken to develop a suite of compressor platforms which the company believes are the most efficient in the world, in addition to being the lightest and most durable.
“The company is now ready to transition to high production volume to meet expected global demand for its range of e-compressors, fuel cell compressors and industrial blowers.
“Interest is growing rapidly in our products for the developing clean energy sector, but we see faster and more reliable revenue growth for Sprintex in the more mature industrial sector.”
Fundraising summary
Under the capital raising, certain current shareholders and company directors will subscribe for 28,888,888 shares at $0.045 each.
For every two shares subscribed, investors will receive one option with an exercise price of $0.10 and an expiry date of June 30, 2025.
Meanwhile, the SPP is targeting the issue of 12.5 million shares with a free attaching option with an exercise price of $0.10 on or before June 30, 2025, for each of two participating shares.