Envirosuite (ASX:EVS) launches $14M equity raise

• Envirosuite (EVS) entered a trading halt this morning which it quickly revealed is for a $14 million equity raising
• The placement will raise up to $8 million through the issue of 94.1 million new shares at 8.5 cents per share — representing a 19 per cent discount to the last traded price of 10.5 cents
• The remaining $6 million will be raised through an accelerated non-renounceable entitlement offer that will be split into an institutional and a retail component
• All up, the entitlement offer will issue about 70.9 million new shares at the same price as the placement
• The money will be used to invest in and expand its EVS Omnis and EVS Water product suites globally
• Envirosuite’s shares remain in a trading halt and last traded at 10.5 cents on May 21

Envirosuite (EVS) entered a trading halt this morning which it quickly revealed is for a $14 million equity raising.

Before a separate announcement with further details was released, the environmental intelligence company did disclose the capital raise would be in the form of an institutional placement and pro-rata accelerated non-renounceable entitlement offer.

Envirosuite will use the money to invest in the EVS Omnis and EVS Water product suites, and expand sales globally to maximise long term shareholder value.

“We believe now is the opportunity to further invest into the growth potential for the EVS Water product suite, to accelerate our product roadmap, and drive growth in the North American market,” CEO Jason Cooper said.

“As part of the offer, we will look to also provide greater balance sheet flexibility as the company continues to grow and invest into transformation initiatives to improve the operating margins of the business,” he added.

The institutional placement will raise up to $8 million through the issue of 94.1 million new fully paid ordinary shares at 8.5 cents per share. This represents a 19 per cent discount to the last traded price of 10.5 cents.

The remaining $6 million will be raised through a one-for-14.5 pro-rata accelerated non-renounceable entitlement offer that will be split into an institutional component and then a retail component.

All up, the entitlement offer will issue about 70.9 million new shares at the same price as the placement.

The placement and institutional offer will close on May 25 and new shares will settle on June 1 and be allocated the following day.

The retail component will be open from May 31 and will close on June 11, with new shares being allocated on June 21 and commence trading the following day.

Envirosuite’s shares remain in a trading halt and last traded at 10.5 cents on May 21.