- XTEK (XTE) has announced it will raise $11.2 million in capital via a placement and share placement plan (SPP)
- The defence company said its already received firm commitments to raise $9.2 million via the placement
- It also plans to raise an additional $2 million through the SPP, which is available to existing shareholders
- Under both deals, new shares will be priced at a discounted 69 cents per share and the funds raised will be spent on the company’s international ballistics strategy
- In the meantime, XTEK also updated its FY20 guidance, revealing it now expects to earn $42.7 million in revenue
- Shares in XTEK ended the day trading slightly in the red, down 4.27 per cent for 78.5 cents each
Defence technology company XTEK (XTE) has announced plans to raise $11.2 million in capital via a placement and share placement plan (SPP).
XTEK announced the raise today, revealing it had already received firm commitments from new and existing shareholders to raise $9.2 million via the placement.
Under the deal, new shares will be priced at 69 cents each, which represents a 12.1 per cent discount on the five-day volume-weighted average price (VWAP).
The new shares issued under the non-underwritten SPP will also be sold at the same price, with the company hoping to raise an additional $2 million in capital.
The company said it expects the majority of the funds raised via the placement and SPP to be put towards executing XTEK’s international ballistics strategy.
“We look forward to accelerating our ballistics commercialisation strategy by increasing our manufacturing capacity in the U.S., effectively doubling XTclave revenue capacity,” XTEK Managing Director Philippe Odouard said.
Alongside the capital raise announcement, XTEK also revealed its updated FY20 guidance.
The company now expects to achieve a record revenue of around $42.7 million, an increase of 12.7 per cent compared to FY20.
XTEK also believes gross profit will also increase to around $9 million, up from $6.9 million in FY19.
Finally, it estimates EBITDA will total $800,000 for FY20, up from $300,000 in the previous financial year.
“We are well-positioned to capitalise on the anticipated growth and look forward to executing our ballistics strategy to unlock the lucrative U.S. defence market which provides a clear pathway to achieving our medium-long term target of $100 million revenue,” Philippe added.
Shares in XTEK closed slightly in the red, trading down 4.27 per cent for 78.5 cents each on August 10.