Synertec Corporation Ltd (ASX:SOP) has raised A$8 million from institutional and sophisticated investors to fund its predictive intelligence solar and battery power system.
The engineering company’s Powerhouse technology provides reliable, continuous and 100% renewable base load power to remote areas, making it a prime candidate for resources and energy stocks working across rural Australia.
Synertec recently scored its first commercial order for the system from oil and gas giant Santos Ltd (ASX:STO), marking a major step forward in Powertech’s development.
To support the rollout, Synertec will divvy up the $8 million across four key categories:
- A$3 million to purchase long lead time components;
- A$3 million to develop the technology for new applications and customers;
- A$1 million to build a dedicated assembly facility; and
- A$1 million to provide working capital for various growth initiatives.
Commenting on the raise, Synertec chair Dennis Lin welcomed new investors to the company and thanked SOP’s exisiting shareholder base for their strong support.
“The recent commercialisation of Powerhouse was a significant achievement for the company and we are continuing to progress a procurement plan with Santos to meet their operational requirements,” he explained.
“Funds from the placement will provide the company with the balance sheet strength to rapidly deploy our Powerhouse technology across various customers and industries, as well as continue to grow out our niche engineering business, driving revenue growth and cashflow generation for the group.
“The large target market we see for Powerhouse across both domestic and international markets provides a significant growth opportunity for Synertec and one which we believe will deliver significant value accretion for the company,” Lin concluded.
Introducing Powerhouse
Synertec markets its Powerhouse technology as a field-proven, cost-effective, zero-emission, industrial-scale energy system without the need for fossil fuel backup.
Powerhouse technology in action.
Interestingly, it’s also the only global electrification technology that uses predictive intelligence to create, control and deliver zero-emission, industrial-scale renewable energy.
By offering a scalable and mobile energy system, Synertec hopes to help businesses reduce their carbon footprint and increase reliance on cleaner, greener electrical energy.
Placement details
Synertec has received binding commitments from domestic investors to raise $8 million by issuing 36.4 million new shares at A$0.22 a pop — a 12% discount to the company’s five-day volume-weighted average price.
Shares are expected to settle next week and issue on May 10, ranking equally with other Syntertec shares on issue.
Taylor Collison and Shaw and Partners built the book as joint lead managers to the placement.