- Sustainable bioplastics developer SECOS (SES) has received commitments from sophisticated investors for a $1.1 million placement
- Approximately 22 million shares will be issued to investors and shareholders at a price of $0.05 per share
- This money will add to SECOS’ already existing cash on hand of $1.5 million
- Money raised will serve as a buffer for any unforeseen circumstances and provide working capital for new purchase orders
- SECOS has ended the day up a healthy 20 per cent with shares trading for six cents each
Sustainable bioplastics developer SECOS (SES) has received commitments from sophisticated investors for a $1.1 million placement.
This $1.1 million raised will add to SECOS’ current cash on hand of $1.5 million to bring the total amount to $2.6 million.
Approximately 22 million shares will be issued at a price of $0.05 per share.
Not only will the money add to SECOS’ current cash on hand but it will also provide the necessary working capital to ensure it fulfils new purchase orders.
The money will also support SECOS’ continuous expansion of its biopolymer resin capacity serving as a buffer against any unforeseen circumstances, especially those from COVID-19.
“The decision to raise funds at this point in time will ensure the company’s ongoing success and further strengthen the company’s balance sheet,” Chairman Richard Tegoni said.
“Although we have experienced some short-term plant shutdown as a result of COVID-19, the overall impact on the business has been minimal as SECOS products are sold into markets such as food, medicinal and hygiene sectors which are essential to daily life,” he added.
SECOS is a leading developer and manufacturer in sustainable packaging materials and was formed in 2015 through the merger between Cardia Bioplastics and Stellar Films Group.
The company develops, manufactures and markets high quality packaging materials that are compostable, printable and reusable.
This material can be used for shopping and waste bags, clingfilm, and utensil packaging.
SECOS has ended the day up a healthy 20 per cent with shares trading for six cents apiece in a $20.13 million market cap.