XTEK Ltd (ASX:XTE) has today opened a pro-rata non-renounceable entitlement offer to all eligible security shareholders with the aim of raising up to A$5 million.
The offer of one new share for every 3.7 existing shares held is at an issue price of A$0.26 per share.
It is partially underwritten up to a maximum of A$3 million by MST Financial Services Pty Ltd as underwriter and non-executive chairman Uwe Boettcher and major shareholder Altor Capital Pty Ltd as sub-underwriters.
This capital raising drive closely follows an underwritten institutional placement earlier this month that brought in A$2.7 million.
Use of funds
XTEK, which provides high-quality products to deliver tailored solutions to the government, law enforcement, military, space and commercial sectors, plans to use the funds in four areas:
- UAVs - Development of Australian-made small VTOL Unmanned Aerial Vehicles for upcoming sales opportunities with the Australian Defence Force;
- Software - Development of the next XTatlasTM actionable intelligence software applications;
- Ballistics - Expand the range of hard armour plates and helmets made using XTEK’s patented XTclave process; and
- Working capital - Provide working capital required to grow the company’s business and meet its ongoing financial obligations for factory stock, corporate and transaction costs.
Entitlement offer
The pro-rata non-renounceable entitlement offer is made to all eligible security holders as recorded on the Security Register at 7.00 pm (Sydney time) on Thursday, October 7, 2021.
It will be on a pro-rata basis of one new security for every 3.7 securities held and is open to eligible security holders with a registered address in Australia and/or New Zealand.
Lead manager
MST Financial Services Pty Ltd acted as an underwriter and lead manager to the offer.
The offer will be partially sub-underwritten by two of XTEK's major security holders, Altor Capital Management Pty Ltd and UDB Pty Ltd, a company controlled by XTEK’s chairman Uwe Boettcher.
All new shares issued under the offer will be issued on the same terms as and will rank equally with, existing XTEK shares.