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- Harvest Technology Group (HTG) has received binding commitments to raise $7.6 million through a private placement to accelerate growth
- The placement to institutional and sophisticated investors was completed at an issue price of 32 cents per share, with 23,842,185 new fully paid ordinary shares set to be issued by May 10, 2021
- Proceeds from the placement will go towards supporting Harvest’s growth strategy and expansion in the U.S.
- Harvest Technology Group shares are down 4.62 per cent, trading at 31 cents
Harvest Technology Group (HTG) has received binding commitments to raise $7.6 million through a private placement to accelerate growth.
The placement to institutional and sophisticated investors was completed at an issue price of 32 cents per share, with 23,842,185 new fully paid ordinary shares set to be issued. The placement price represents at 1.54 per cent discount to the last closing price on April 28, and an 8.22 per cent discount to the 15-day volume-weighted average price of $0.34.
Proceeds from the placement will go towards supporting Harvest’s growth strategy. The company plans to accelerate its expansion in the U.S., expand its customer base and establish new global partner alliances to further increase its market penetration. Remaining funds will go towards ongoing working capital requirements.
Shares are expected to be issued by May 10, 2021 and will rank equally with existing shares.
Harvest’s three-phase strategic plans, which were previously released in October 2020, outline the steps required for a global roll-out of the company’s industrial-grade connectivity technology, which enables the secure encrypted transfer of data, high-definition video and audio, regardless of location or network quality.
Phase one of the plan is currently underway, focussing on improving speed to market and scaleability and is due for competition in the second half of 2021.
Harvest Technology Group shares are down 4.62 per cent, trading at 31 cents at 12:30 pm AEST.
