Join our daily newsletter At The Bell to receive exclusive market insights
- De.mem (DEM) has successfully tapped institutions for $9 million and launched a share purchase plan to raise an extra $1.2 million to fund its Capic buyout
- The water and wastewater treatment company has priced new shares at 28 cents each under both the placement and the purchase plan
- This price represents a 13.77 per cent discount to De.mem’s five-day volume-weighted average price
- The company has already received commitments for the $9 million from some high-profile investors and plans to raise $1.2 million from the purchase plan
- De.mem says the fresh influx of cash will be largely used to help fund the company’s purchase of WA-based water treatment business Capic
- Shares in DEM retreated slightly on the ASX today to close at 34 cents each
De.mem (DEM) has successfully tapped institutions for $9 million and launched a share purchase plan to raise an extra $1.2 million to fund its Capic buyout.
The water and wastewater treatment specialist announced its plans to raise some fresh funds on Monday, March 15, though the $10.2 million price target was only revealed today.
De.mem raised $9 million by placing just over 32 million shares to strategic and institutional investors at 28 cents each — a 13.77 per cent discount to the company’s five-day volume-weighted average price.
Major shareholder Perennial Value Management helped raise the funds alongside Pathfinder Asset Management and some other high-profile investors.
To give mum and dad investors a chance to top up at the discounted price, De.mem has also launched a share purchase plan at the same price of 28 cents per share.
Under the purchase plan, investors have the chance to subscribe for up to $30,000 worth of De.mem shares at the discounted rate, with the company hoping to raise $1.2 million from this segment of its capital raising plan.
De.mem CEO Andreas Kroell said the fresh influx of cash will be largely used to help fund the company’s purchase of WA-based water treatment business Capic, which was announced earlier this week, as well as to grow the company’s build, own, operate (BOO) business segment.
“We welcome investment from high-quality institutions, with each investor known to be a long-term supporter of high-quality growth businesses,” Andreas said.
“With our world-leading, innovative membrane technology, expanded product range — including Capic’s speciality chemicals — and our proven capability to operate and maintain water treatment plants, De.mem is uniquely positioned to realise our vision of becoming the Australian ‘international champion’ providing the complete ‘one-stop shop’ of decentralised industrial water treatment solutions,” he said.
De.mem said after the capital raise and Capic acquisition, it expects to have around $11.5 million worth of cash and term deposits.
Shares in DEM retreated slightly on the ASX today to close at 34 cents each. The company has a $58.81 million market cap.
