Synertec Corporation Ltd (ASX:SOP) has added $5 million to the bank following a successful share placement.
The diversified technology design and development growth company has received binding commitments from domestic institutional and sophisticated investors to raise $5 million (before costs) through the issue of 31.25 million shares at $0.16 per share.
Funds raised will be used to provide balance sheet support for the execution of the company’s growth strategy, including commercialisation of its large near-term ESG-focused technology, Powerhouse.
Capital raising details
The placement price is a 13.5% discount to the last closing price of $0.185 as of Thursday, September 8, and a 14.1% discount to the five-day VWAP of $0.186 per share up to and including September 8.
All shares issued under the placement will rank equally with the company's existing fully paid ordinary shares.
Proceeds for ESG technology, engineering solutions
The proceeds of the placement will be applied towards balance sheet support for the company’s dual strategy of commercialising several large near-term ESG-focused technology opportunities in the energy sector and growing out a high-end engineering solutions business as follows:
- $4 million to drive technology development and commercialisation of its ESG-focused technologies to assist in the decarbonisation of Synertec’s large and prestigious customer base; and
- $1 million for working capital applied to fund a growing portfolio of engineering solutions with the company’s blue-chip customer base.
“With the development of our Powerhouse technology progressing rapidly and a number of upcoming milestones, we are well positioned to commercialise our technologies and potentially generate material value for our shareholders.
“I look forward to updating the market on our progress in coming periods.”
Taylor Collison and PAC Partners acted as joint lead managers for the placement, and approached new sophisticated investors as well as their own clients to participate in the placement.