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UPDATE - Seeing Machines raises £15mln as opportunities multiply

Oversubscribed placing at 5p will provide funds and flexibility to expand further into mining, aircraft safety and road vehicles.

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Seeing Machines (LON:SEE) has raised £15mln through an oversubscribed placing to expand use of its visual recognition and fatigue monitoring technology in mining, road vehicles and aircraft.

Seeing Machines has recently received significant orders for its Driver State System (DSS) fatigue and distraction monitor systems from mining giants Freeport-McMoRan and BHP Billiton.

The system alerts the company if a driver of one of their huge mining trucks is becoming dangerously tired.

Recent reports of pilots falling asleep in commercial and passenger flights have also raised the possibility of the systems being used in planes to monitor cockpit fatigue.

Seeing Machines said the new funds will give it some breathing space on working capital and some flexibility to explore these and other areas.

According to small-cap specialist broker finnCap the technology could be used in industries as diverse as consumer electronics, utilities and even education.

Referring to the cash call, analyst Lorne Daniel said: “The company has received remarkable backing from the capital markets and is now fully funded to take advantage of the opportunities ahead.”

Seeing Machines will place 300mln shares at 5p per share in two tranches.

Of these, 70 mln will be issued immediately with the remainder at the end of the year. There is also an option to raise a further £1mln from certain existing shareholders in Australia and overseas. The market price last night (Thursday) was 7.45p.

Ken Kroeger, Seeing Machines' chief executive said:  "We are very pleased with the success of this capital raising as the funds will strengthen our balance sheet and enable us to take advantage of some of the compelling opportunities available to us."

Terry Winter, chairman, added that the placing would also substantially broaden the shareholder base.

FinnCap has set a 12-month price target for the stock of 10p (the current price is 6.75p) “with the expectation of much greater upside in the years ahead”.

Philip Whiterow
Philip Whiterow
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