Sprintex (ASX: SIX) is undertaking a one for six non-renounceable entitlement issue to raise around A$2.2 million to fund its activities as it moves nearer to anticipated sales of its recently released Jeep supercharger system.
Demonstrating support for the company, its directors have already affirmed they will take up their full entitlements under the offer, which secures $1.2 million of the total funds for Sprintex.
Sprintex is offering up to 113.8 million shares at $0.02 per share to eligible shareholders.
The shares will be offered on the basis of one new share for every six existing shares held at the record date with three free attaching options exercisable at $0.02 per share on or before 30 June 2013.
Late last year Sprintex signed an exclusive distribution agreement with Beijing Yunliang Shunda Trade Co for the distribution of Sprintex’s supercharger systems for 4WDs/SUVs in China.
The company is currently engaged in the global rollout of its supercharger systems, in particular the Sprintex JK Jeep Wrangler supercharger system, after commissioning a new assembly and manufacturing facility in Malaysia with initial capacity of producing 20,000 superchargers per annum.
The Sprintex JK Jeep Wrangler supercharger system won a Global Media Award in November 2011 at the Specialty Equipment Market Association Las Vegas Show for being one of the top 10 products of 2011, and is expected to be one of Sprintex’s leading products in 2012.
The Jeep Wrangler is one of China’s most popular 4WDs, and more than 110,000 were sold in the United States last year.
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