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- Defence product maker XTEK (XTE) has bolstered its recent capital raising plan and pocketed nearly $1 million more than initially planned
- The company launched a capital raising plan in early August under which it sought $11.2 million through a placement and share purchase plan
- On August 10, XTEK raised 9.2 million through the placement, with the remaining $2 million to be pulled in through the purchase plan
- However, XTEK received applications for almost $2.9 million under the plan and decided to accept the whole lot
- This means the company pocketed over $12 million from the capital raise
- Shares in XTEK closed a slight 0.75 per cent higher today, worth 67.5 cents each
Defence product maker XTEK (XTE) has bolstered its recent capital raising plan and pocketed nearly $1 million more than initially planned.
The company sought $11.2 million through a placement and share purchase plan in early August. All new shares under the plan were priced at 69 cents a pop, and XTEK raised $9.2 million in the placement on August 10.
The remaining $2 million was planned to be raised as part of the non-underwritten share purchase plan (SPP), but the company said it bagged applications for almost $2.9 million worth of shares.
As such, the company has opted to accept all applications, totalling just under 4.2 million new shares, and pocketed the full amount. This means XTEK will have raised over $12 million once the share purchase plan shares settle.
XTEK Managing Director Philippe Odouard thanked new and existing shareholders for their support of the capital raise.
“We are highly encouraged by the level of shareholder participation in the SPP, which resulted in raising more funds than our initial targeted amount,” Philipe said.
He said the support for the raise is a strong endorsement of the company’s strategy and outlook.
“We are now well-positioned to execute on our international ballistic strategy and accelerate further growth, providing a clear pathway to achieving our medium long term target of $100 million revenue,” he added.
The company said the new shares subscribed for under the SPP will be allotted and issued on Friday, September 4, and should be trading by Monday next week.
Shares in XTEK traded marginally higher following today’s news. The company closed 0.75 per cent higher with shares worth 67.5 cents each.
