Market Herald logo


Be the first with the news that moves the market
  • XTEK (XTE) is looking to raise up to $7.7 million through a placement and entitlement offer
  • Around $2.7 million is being raised through an institutional placement to investors at 26 cents per share
  • The other $5 million is being raised through a partially underwritten non-renounceable entitlement offer which will follow the placement
  • XTEK plans to use the money to develop and expand its product range and for working capital
  • Company shares are down 17.8 per cent to trade at 30 cents at 3:09 pm AEDT

XTEK (XTE) is looking to raise up to $7.7 million through a placement and entitlement offer.

The company went into a trading halt on September 30 but hadn’t disclosed how much it would raise how it would spend the funds.

XTEK is raising around $2.7 million through an institutional placement. The company will issue new shares at 26 cents per share to institutional, sophisticated and professional investors.

The issue price represents a 28.8 per cent discount to the last closing price of 36.5 cents on September 29 and a 31.7 per cent discount to the 15-day volume-weighted average price.

The company expects the placement will settle on October 8 and the new shares will commence trading on October 11.

Additionally, XTEK hopes to raise up to a further $5 million through a pro-rata non renounceable entitlement offer.

The offer, which is partially underwritten at $3 million, will follow the placement and allow eligible shareholders to apply for one new security for every 3.7 securities held.

Security holders will also have the opportunity to apply for new securities that are not fully subscribed as part of the shortfall offer.

The entitlement offer will be open from October 11 until October 25.

XTEK will use the money to develop a small vertical take-off and landing (VTOL) unmanned aerial vehicle for upcoming sales opportunities with the Australian Defence Force, develop the next XTatlas actionable intelligence software applications, expand the range of hard armour plates and helmets made using its patented XTclave process, as well as for working capital.

Company shares were down 17.8 per cent to trade at 30 cents at 3:09 pm AEDT.

XTE by the numbers
More From The Market Herald
The Market Herald Video

" Security Matters (ASX:SMX): Addressing fashion’s $40-billion problem

Australian company Security Matters is taking the lead in helping the fashion industry’s attempts to address a $40-billion problem.

" Damstra (ASX:DTC) raises $13.8m via placement and institutional offer

Damstra Holdings (DTC) is expecting to raise $20 million following a share placement and entitlement offer.
ClearVue Technologies (ASX:CPV) - Executive Chairman, Victor Rosenberg

" ClearVue Technologies (ASX:CPV) enters collaboration agreement for smart greenhouse

ClearVue Technologies (CPV) has entered a three-way collaboration agreement with Foresense Technologies and Produsense.
icetana Limited, ICE - CEO, Matthew Macfarlane

" icetana Limited (ASX:ICE) signs Memorandum of Understanding with Threat Protect (ASX:TPS)

icetana Limited (ICE) has signed a memorandum of understanding with Threat Protect Australia (TPS).