Source: BSA
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  • BSA (BSA) is looking to raise $15.5 million to provide general working capital, through a placement and 1-for-3.19 entitlement offer
  • The telco and property contractor will issue around 155 million shares at 10 cents each, representing a 23.1 per cent discount to the last closing price
  • Additionally, BSA is expecting lower full-year results due to COVID-19 and weather events in Queensland and New South Wales, with $240 million to $260 million revenue and up to $4 million EBITDA in the second half of the financial year
  • Following the capital raise, Managing Director and CEO Tim Harris will step down from his role to pursue other opportunties
  • Shares in BSA last traded at 13 cents each

BSA (BSA) is looking to raise $15.5 million to provide general working capital.

The telco and property contractor will undertake a $1.8 million placement and $13.7 million entitlement offer on a 1-for-3.19 basis.

Around 155 million new shares will be issued at 10 cents each, which represents a 23.1 per cent discount to the last closing price of 13 cents on April 5.

“The equity raising, to strengthen the balance sheet will ensure the company has sufficient financial flexibility to deliver improved profitability and shareholder return,” Interim Chair Nick Yates said.

“We are confident with the outlook for the core businesses and the executive team is firmly focused on the delivery of improved group margin and stakeholder outcomes.”

Notably, the company said it is also expecting lower full-year results due to COVID-19 and weather events in Queensland and New South Wales.

BSA anticipates earning $240 million to $260 million in revenue and between $2 million and $4 million in EBITDA during the second half of the 2022 financial year.

Following the capital raise, Managing Director and CEO Tim Harris will step down from his role to pursue other opportunties.

Arno Becker, currently Group CFO, has been appointed interim CEO and will oversee the business.

“The board would like to thank Tim for his contribution to the group these past six years and wish him well on his future endeavours,” the company said.

Shares in BSA last traded at 13 cents each on Tuesday, April 5.

BSA by the numbers
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