Sprintex Ltd (ASX:SIX) has received firm commitments from sophisticated and professional investors to raise $4 million through a well-supported placement at an issue price of $0.075 per share.
In order to provide existing shareholders with the opportunity to participate in the capital raising, Sprintex also intends to undertake a share purchase plan (SPP) to raise up to $1 million with a record date of November 1, 2021
Funds raised in the placement and SPP will be used to finance the system development and production costs of its recently announced e-compressor strategy.
“Expand company’s global growth”
Sprintex managing director Jay Upton said: “We are very pleased with the strong demand for the placement and we would like to reward existing shareholders by enabling them to participate in an SPP on the same terms as the placement.
“The Sprintex board is excited to continue to develop premium products and expand the company’s global growth, particularly in the e-compressor sector where we have recently signed two significant revenue-generating contracts.”
Well-supported placement
Under the placement, 20,409,654 placement shares will be issued under the company’s placement capacity under Listing Rule 7.1 on or about November 8, 2021, and 32,923,680 placement shares will be issued subject to shareholder approval at the AGM planned for December 2021.
In addition, the company has also issued one free attaching option exercisable at 10 cents on or before the anniversary of their issue for every two participating shares.
Viriathus Capital Pty Ltd acted as lead manager to the placement.
The indicative timetable for the issue of the SPP
Annual general meeting
Sprintex has decided to defer its annual general meeting to December 2021 in line with guidance issued by the Australian Securities and Investment Commission (ASIC).
This will enable the company to table the resolutions to affect the placement, replenish its placement capacities and the issue of options.
Sprintex is a clean air compressor engineering, research, product development and manufacturing company.