- Harvest Technology Group (HTG) has entered a trading halt in relation to an upcoming capital raise
- The company recently attempted to raise $11.1 million through an institutional and retail entitlement offer, however it only ended up raising $4.07 million
- Harvest hoped to use the funds to execute the second phase of its three-phase strategic plan which is how the upcoming funds may be spent, however this hasn’t been disclosed
- HTG shares last traded at 15 cents on February 23 and expects to come out of the trading halt by Monday, February 28
Harvest Technology Group (HTG) has entered a trading halt in relation to an upcoming capital raise.
The information technology stock is yet to disclose how much it plans to raise and how it will spend the funds.
Harvest Technology is focused on enabling remote industrial operations to run efficiently and safely with live streaming high-definition video, remote equipment control, and problem resolution on any device anywhere in the world.
The company last launched a capital raise in December however, it didn’t receive the amount of support it was hoping for.
Harvest’s partially underwritten entitlement offer aimed to raise up to $11.1 million through the issue of 53 million shares at 21 cents across the institutional and retail components.
The institutional component was completed in mid-December and raised $3 million and the company reaffirmed it was still hoping to raise the $8.1 million through the retail offer and even extended its closing date to welcome more applications.
Unfortunately, the retail component ended up raising roughly $1.06 million. In total, the company raised just $4.07 million, which is just shy of being a third of the planned amount.
Harvest’s intentions for the previous capital raise was to execute the second phase of its three-phase strategic plan. This involved expansion, forming a defence supplier division and releasing an enhanced version of the Nodestream software application and new remote inspection system.
The upcoming raise could support these initiatives, as the company raised much less than expected and yesterday reported a loss of $7.2 million for H1 FY22 and a net cash outflow of $1.6 million.
HTG expects to come out of the trading halt by Monday, February 28 and shares last traded at 15 cents on February 23.