AnteoTech (ASX:ADO) enters $3.76M option underwriting agreement

• AnteoTech (ADO) has entered an option underwriting agreement for Mahe Capital to underwrite the excess of the options currently on issue
• All up, 188.1 million options are currently on issue — exercisable at two cents each — to raise $3.76 million
• These options have an exercise price of two cents and an expiry date set for December 6, 2020
• This money, along with an existing cash balance of just over $3.2 million, puts AnteoTech in a strong financial position to pursue several growth initiatives and ramp-up activities
• The company states it will now be fully-funded beyond 2021
• AnteoTech is steady on the market this morning and shares are currently trading for 5.2 cents each

AnteoTech (ADO) has entered an option underwriting agreement for Mahe Capital to underwrite the excess of the options currently on issue.

All up, 188.1 million options are currently on issue to raise $3.76 million. These options have an exercise price of two cents and an expiry date of December 6, 2020.

This money, along with an existing cash balance of just over $3.2 million as of June 30, puts AnteoTech in a strong financial position to pursue several growth initiatives and ramp-up activities.

Based on its $75,000 June quarter cash burn, and with government grants and customer receipts totalling $1.12 million, AnteoTech states that it will now be fully-funded beyond 2021.

“We are delighted to have secured this funding commitment from Mahe Capital and we thank them for their ongoing support,” CEO Derek Thomson commented.

“Mahe’s willingness to underwrite the conversion of these options is a strong validation of our strategy and forward plans and gives us the confidence to aggressively pursue a number of very important near-term value catalysts in our Life Sciences and Energy divisions,” he said.

“With a clear development pathway in place and the funding support to drive this now secured, we are exceptionally well-positioned to deliver significant value over the coming months and I look forward to providing shareholders with regular updates,” he added.

AnteoTech is steady on the market this morning and shares are trading for 5.2 cents each at 11:09 am AEST.