- Electrical and energy solutions provider Enevis (ENE) will raise almost $1.5 million through a fully underwritten non-renounceable entitlement offer
- The offer will issue fully paid ordinary shares to eligible shareholders at 4.5 cents each
- Shareholders also have the opportunity to subscribe for additional new shares under an oversubscription facility
- Funds from the raise will be used to discharge $1.4 million in loans
- This enables Enevis to strengthen its balance sheet during COVID-19
- Shares in Enevis have dropped 9.09 per cent and are trading for 4 cents each
Enevis (ENE) is undertaking a fully underwritten one for two non-renounceable pro rata entitlement offer to raise $1,498,750.
Enevis provides electrical and energy-efficient technologies, products and services to the commercial, industrial and infrastructure sectors. It delivers these offerings through its complementary divisions, SKS Technologies and SKS Lighting.
The entitlement offer will issue fully paid ordinary shares to eligible shareholders at a price of $0.045 each.
The company also offers shareholders the opportunity to subscribe for additional new shares under an oversubscription facility.
The capital raise has received firm support from each of Enevis’ current directors, who have agreed to participate in the offer and take up their full entitlements.
Funds from the raise will be used to discharge secured and unsecured loans of $1.4 million with a related party lender. An unsecured loan of $400,000 (plus interest) will be discharged first and will be followed by a secured loan of $1 million (plus interest).
“The entitlement offer not only relieves interest burden and lowers financing costs, it strengthens our balance sheet and is an important plank in our strategy to restore the business to sustainable profits,” Executive Chairman and Managing Director Peter Jinks said.
Discharging the debt owed to related parties will allow Enevis to discharge the secured loan over its assets, reduce the number of the company and its wholly-owned subsidiary’s creditors, and strengthen its balance sheet.
Amid the COVID-19 environment, the capital raising provides Enevis with security as it restructures and consolidates its operations.
The entitlement offer is expected to open on June 5 and will close on June 17.
Shares in Enevis have dropped 9.09 per cent and are trading for 4 cents each at 3:06 pm AEST.