- Australian technology company Calix (CXL) is set to raise up to $17 million to accelerate its environmental, social and governance projects
- $14 million will be raised through a placement which will issue seven million shares at $2 per share — marking an 11.1 per cent discount to the last close price of $2.25
- Additionally, Calix will launch a share purchase plan to raise a maximum amount of $3 million
- Calix will use the money to advance battery and lab equipment, fund two new plants, hire more engineers and conduct test work and feasibility studies
- Company shares are down 1.78 per cent and are trading at $2.21
Calix (CXL) has received firm commitments from sophisticated and professional investors to raise $14 million through a placement.
The multi-award winning technology company will issue about seven million shares at $2 per share which represents an 11.1 per cent discount to the last closing price of $2.25 and a 6.8 per cent discount to the 10-day volume-weighted average price.
Additionally, Calix will launch a share purchase plan (SPP) which will allow eligible shareholders to subscribe for up to $30,000 worth of shares at the same issue price of the placement.
The SPP will be capped at $3 million and Calix has the right to scale back any applications.
Calix will use the money to accelerate its battery development program and invest in environment, social and governance (ESG) projects.
Specifically, Calix will allocation portions of the raise capital to different lines of its business with advanced batteries receiving the most.
The company will allocate about $4.5 million towards advanced batteries after seeing very positive results in its development program. Therefore, it will prioritise in-sourcing critical battery and lab equipment.
the company’s water business will receive the next largest allocation, with approximately $2 million going towards two new plants and three new sales and two new operations across Europe and the U.S.
Additionally, Calix will use the money to hire more engineers, test programs for crop protections and marine coatings, as well as two feasibility studies over the next 12 months.
“We had already started to enhance our team with the recent appointment of Ex-Booz executive Hinne Temminck as GM – Strategy and Portfolio. Following a strategic review on generating the nest value for our shareholders, we felt it was the right time to hit the accelerator and access some additional capital to fully resource these opportunities,” CEO and Managing Director Phil Hodgson said.
The placement is expected to settle on March 24 and new shares will be allocated and commence normal trading on the following day. The SPP will close on April 8, with new shares to be allocated on April 12 and commence normal trading on the following day.
Company shares are down 1.78 per cent and are trading at $2.21 at 1:47 pm AEDT.