Synertec Corporation Ltd (ASX:SOP) has received binding commitments from sophisticated investors to raise $7.1 million through a placement of 71.4 million new shares at an issue price of 10 cents per share.
The company plans to use the proceeds from the placement in funding several initiatives that will progress and scale its expanding portfolio of ESG-focused technology for the energy sector and engineering solutions with its blue-chip customer base.
Synertec’s placement was cornerstoned by high-quality institutional investors, Perennial Value Management and SG Hiscock, providing a strong endorsement for the company.
“Strategy for targeted, diversified growth”
Synertec chairman Dennis Lin said: “Our successful capital raising will help us to continue to deliver on our strategy for targeted, diversified growth led by a stable of energy-focused, environmentally-friendly technologies which we are developing with our specialist engineering team and industry partners, and I thank all investors for their strong and loyal support of Synertec.”
Placement details
The issue price of 10 cents a share represents a 9% discount to the closing price and the 5-day volume-weighted-average price of 11 cents a share on July 30, 2021.
Synertec will issue placement shares in two tranches of 42.9 million shares and 28.5 million shares using its capacity under the listing rule 7.1 and 7.1A, and doesn’t require shareholders approval.
All the placement shares will be ranked equally with the company's existing fully paid ordinary shares.
Taylor Collison and PAC Partners acted as joint lead managers to the placement.