Harvest Technology (ASX:HTG) to raise $10M to promote growth

• Harvest Technology Group (HTG) has received binding commitments to raise $10 million via a private placement
• The harvested funds will be used to accelerate and support product development initiatives and progress alliances to increase market penetration
• Participants in the placement are a mix of existing, institutional and sophisticated investors
• HTG Managing Director, Paul Guilfoyle, said the investment underlines the role the company is expected to play in the satellite communications sector moving forward
• The company has enjoyed a great first half of the year, seeing their share price nearly quadruple from 5.5 cents since the start of January.
• However, HTG is in the red today, like much of the market, down 7.8 per cent and trading shares for 17.5 cents each.

Technology solutions provider Harvest Technology Group (HTG), is set to raise $10 million via a private placement.

The company has received binding commitments from a mix of existing, institutional and sophisticated investors.

Harvest will use the funds will be used to accelerate and support product development initiatives and progress alliances to increase market penetration.

“The investment received from such a high-quality group of investors underlines the attractive investment proposition of Harvest Technology Group and the role it is expected to play in the satellite communications sector.”

Managing Director, Paul Guilfoyle

Harvest reaping rewards

Harvest Technology Group has enjoyed a fruitful start to 2020.

On January 2, the company’s share price was hovering at 5.5 cents.

On June 19, it had blossomed to 19 cents following some great contract wins as well as appointing former Australian Defence Force Major General, Jeffrey Sengelman, as a non-Executive Chairman.

The placement

The placement was completed at an issue price 13.5 cents per share and 74,074,074 new fully paid ordinary shares will be issued, which is expected to settle on or about June 23, 2020.

The company said the placement price of 13.5 cents represents a 10 per cent discount to the 15-day volume-weighted average price of 15 cents.

Harvest is in the red today, like much of the market, down 7.89 per cent and trading shares for 17.5 cents each.