Total
0
Shares
SciDev (ASX:SDV) - Managing Director & CEO, Lewis Utting
Managing Director & CEO, Lewis Utting
Source: SciDev
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • SciDev (SDV) taps investors for $20 million to accelerate business growth
  • Binding commitments have been received for a share placement to raise $18 million through the issue of more than 27.6 million shares at 65 cents each
  • Following the placement, the company plans to undertake a share purchase plan to raise the additional $2 million with shares offered at the same price as the placement
  • With the fresh capital, SDV says it will be able to accelerate the growth opportunities across its business, specifically in the large water treatment vertical
  • Shares in SciDev are down 7.64 per cent to $0.66 as of 12:33 pm AEDT

SciDev (SDV) has tapped investors for $20 million to accelerate business growth.

The environmental solutions company is focused on water intensive industries with the aim of solving operational and environmental issues for the water, oil and gas, mining and construction markets.

Binding commitments have been received for a share placement to raise $18 million through the issue of more than 27.6 million shares at 65 cents each.

The issue price represents a 9.7 per cent discount to SDV’s last traded price of 72 cents, and a 13.3 per cent discount to the 5-day volume weighted average price of 75 cents.

Following the placement, the company plans to undertake a share purchase plan to raise the additional $2 million with shares offered at the same price as the placement.

With the fresh capital, SciDev said it will consolidate its Australian production facilities, including an upgrade of laboratory capability and an expansion of its manufacturing capability.

In addition to this growth, the funds will allow the company to pay for the upcoming acquisition for SciDev Water Services, which reportedly achieved 120 per cent of target EBITDA in financial year 2021.

Moreover, SDV plans to use the money to fund new green chemistry initiatives to displace oil-based chemistries in the global oil and gas market.

With the placement oversubscribed, SciDev’s Managing Director and CEO Lewis Utting said the company is delighted with the strong response.

“The placement will allow us to accelerate the growth opportunities across our business, specifically in the large water treatment vertical,” he said.

“The funds will support the expansion of our manufacturing capabilities in Australia, securing our supply chain, improving our margins, and allowing our highly skilled team to continue to develop new technologies to help our clients solve their pressing operational and environmental issues.”

Settlement of the placement is expected to occur on November 8, with the trading of the new shares expected to commence the following day.

The share purchase plan will follow the placement, and is set to close on November 23.

Shares in SciDev are down 7.64 per cent to $0.66 as of 12:33 pm AEDT.

SDV by the numbers
More From The Market Herald
Identitii Limited (ASX:ID8) - Former CFO, Trent Jerome

" Identitii Limited (ASX:ID8) announces CFO resignation

Identitii Limited (ID8) has announced the resignation of its Chief Financial Officer (CFO) Trent Jerome.
Credit Clear (ASX:CCR) - Group CEO, David Hentschke

" Credit Clear (ASX:CCR) announces expansion in New Zealand market

Credit Clear Limited (CCR) has announced an increased distribution of its digital platform in New Zealand.
PlaySide Studios (ASX:PLY) - CEO & Managing Director, Gerry Sakkas

" PlaySide Studios (ASX:PLY) partners with OTK to co-develop a PC-based game

PlaySide Studios (PLY) has partnered with One True King (OTK) to co-develop an upcoming version of a multiplayer PC-based title.
Aurora Labs (ASX:A3D) - CEO, Peter Snowsill

" Aurora Labs (ASX:A3D) raises $3m in share purchase plan

Aurora Labs (A3D) has raised $3 million from a share purchase plan (SPP) which closed on November 26, 2021.