- Synertec Corporation (SOP) completes an oversubscribed share placement to raise $7.1 million
- The industrial stock will issue 71.4 million shares to sophisticated investors at 10 cents each which marks a 9 per cent discount to the last closing price
- Subject to shareholder approval, joint managers Taylor Collison and PAC Partners will receive 10 million options at 20 cents and a three-year expiry date
- Synertec will use the funds to expand its portfolio of technologies for the energy sector and engineering solutions with its blue-chip customers
- Company shares ended the day trading flat at 11 cents
Synertec Corporation (SOP) has successfully completed an oversubscribed capital raise.
The company received binding commitments to raise $7.1 million through a share placement.
All up, 71.4 million shares will be issued to sophisticated investors at 10 cents per share. This represents a 9 per cent discount to the last closing price and the five-day volume-weighted average price on July 30.
Synertec will use the money to support its balance sheet and expand its portfolio of environmental, social and governance (ESG)-focused technology for the energy sector. The funds will also be used to grow its portfolio of engineering solutions with its blue-chip customer base.
Chair Dennis Lin was encouraged by the capital raise.
"Our successful capital raise will help us to continue to deliver on our strategy for targeted, diversified growth led by a stable of energy-focused, environmentally friendly technologies which we are developing with our specialist engineering team and industry partners," Mr Lin said. "I thank all investors for their strong and loyal support of Synertec."
Taylor Collison and PAC Partners acted as joint lead managers to the placement and will be paid a management fee of two per cent, or $143,000, and a selling fee of four per cent, being $286,000.
Subject to shareholder approval, they'll be issued 10 million unlisted options with an exercise price of 20 cents and a three-year expiry date from when they were issued.
Company shares ended the day trading flat at 11 cents.