Tribe Technology PLC (AIM:TRYB) has raised £1.41 million of new cash to support the delivery of its new innovative drill rig, expected next month.
It raised the funds through a placing and share subscription, priced at 4.5p per share, and an issue of convertible loan notes.
Around 18.2 million new shares were sold in the equity sales, raising £0.82 million, with another £0.6 million from the sale of loan notes.
Tribe highlighted it has seen significant commercial progress since last September's IPO and it is now working to ship its first drill rig to Australia by the end of July 2024.
Also, its first sample system has been delivered to South Africa for use by a drilling contractor working for Anglo American.
Tribe noted that it also plans to implement a 30% reduction in operational costs starting September 2024, to ensure business sustainability amidst challenging trading conditions.
Part of this cost-cutting will see the board “streamlined”, with two non-executive directors exiting and Pree Mardia leading the board as an independent non-executive chair.
"We are pleased to complete this fundraise and to have received strong support from new and existing investors,” chief executive Charlie King said in a statement.
“The fundraise will allow us to, inter alia, complete the development, commissioning and deployment of the first drill rig in the field and to support the commercialisation phase of the group's sample systems."
Shane Lanigan, portfolio manager at Beach Point Capital, which in October provided a £3 million loan and today waives financial covenants to enable the latest funding, added to the company’s statement: “Our amended terms show our support for the team and the world class products they have developed.
“This is a young company doing exciting things and we are glad to be on the journey."
In London, Tribe shares traded down 20% to 4.6p.