- Industrial stock K-TIG (KTG) taps investors for $4 million to accelerate its strategic growth initiatives
- Emerging from a trading halt, the company revealed it had received binding commitments for a placement of more then 11.4 million shares at 35 cents each
- With the funds, KTG says it is able to accelerate growth both domestically and internationally across the stainless steel, defence and nuclear sectors
- K-TIG also plans to put the funds towards new strategic partner alliances, research and development, and for ongoing working capital requirements
- Company shares resumed activity today and were trading 4 per cent lower at 36 cents
Industrial stock K-TIG (KTG) has tapped investors for $4 million to accelerate its strategic growth initiatives.
KTG’s business is based around its welding technology which was originally developed by the CSIRO, and reportedly welds up to 100 times faster than traditional TIG welding.
The technology works across a wide range of applications and is particularly well suited to corrosion resistant materials such as stainless steel, nickel alloys, titanium alloys and exotic materials.
Today, the company emerged from a trading halt and revealed it had received binding commitments for the raise through a share placement to institutional and sophisticated investors.
The placement comprises 11.4 million shares to be issued at 35 cents each, on or by Friday, February 18.
The issue price represents a 6.6 per cent discount to the last traded price of 37.5 cents, and a 4.3 per cent premium to the 15 day volume weighted average price.
A total of 428,571 shares are to be issued to company directors, Ms White and Mr McIntosh, or their nominees, subject to shareholder approval which K-TIG said will be sought at the earlier of an extraordinary general meeting or an Annual General Meeting anticipated to be held in November.
With the fresh capital, Chairman Stuart Carmichael said the company will be able to accelerate execution of its strategic growth priorities both domestically and internationally across the stainless steel, defence and nuclear sectors.
K-TIG also plans to put the funds towards new strategic partner alliances to increase market penetration, research and development, and for ongoing working capital requirements.
SRG Partners acted as Lead Manager and will receive a six per cent capital raising fee.
Company shares resumed activity today and were trading 4 per cent lower at 36 cents at 2:20 pm AEDT.