Synertec Corporation Ltd (ASX:SOP) has expanded its capital structure by securing an additional A$4 million debt facility with Altor Capital Pty Ltd, increasing the total available facility to A$19 million.
The new funding arrangement is designed to provide flexibility, allowing Synertec to draw down for working capital requirements while maintaining the original facility tranches to accelerate the rollout of its flagship technology, Powerhouse. The extension, combined with recent trading improvements, is expected to strengthen the company’s pathway to profitability.
“The facility will continue to provide the capital flexibility we require to drive improved financial performance. Importantly, the mix of both debt and equity delivers the optimal balance of capital ensuring that we maximise returns and minimise dilution and financing costs. I would like to thank Altor for their continued support of our business which is a positive endorsement of our strategy and outlook,” Synertec’s managing director, Michael Carroll, said.
Tranche details and use of funds
The extension comprises two tranches: an immediate progressive draw of up to A$2.5 million, and a further A$1.5 million subject to Altor’s investment committee approval, contingent on the full use of the initial tranche.
“Altor Capital Management recognises the progress Synertec has made in stabilising its engineering business and its ongoing efforts to deliver operational improvements. This funding package is designed to support the company through its next phase of development, including the planned scale-up of its Powerhouse technology,” Altor Capital Management’s chief investment officer, Ben Harrison, said.
The existing A$15 million facility, of which A$3.5 million has been drawn, remains allocated to support the commercial deployment of Powerhouse.
In connection with the facility extension, Synertec will issue approximately 7.8 million warrants to Altor under its existing placement capacity, in accordance with ASX Listing Rule 7.1. The warrants will not be quoted on the ASX.
Renewable energy rollout milestone
Powerhouse is Synertec’s 100% renewable and portable solar battery energy storage system (BESS) microgrid, designed to deliver reliable continuous base load power to remote industrial operations.
The company recently marked five years of uninterrupted power delivery across multiple sites in regional Australia. It also announced today that it has secured another order from Santos Ltd for its renewable Powerhouse microgrid technology. The system will be deployed at a greenfield development site in the Surat-Bowen Basin to support Santos’ GLNG gas operations.
This latest order builds on multiple existing installations across Queensland, where Powerhouse has delivered reliable renewable energy to remote operations. Synertec said the repeat order highlights the system’s performance and potential for wider adoption, adding it could pave the way for future deployments with other operators in Australia and international markets.
Read more: Synertec secures repeat Santos order for Powerhouse microgrid system