- Matrix Composites and Engineering (MCE) completes a $7 million capital raise to support growth amid the resurgent oil and gas market.
- The funds will be raised through a two-tranche placement at 16 cents per share — an 11.1 per cent discount to MCE’s last closing price on November 24 of 18 cents
- The first tranche will issue around 15.3 million shares whilst the second will raise a further 4.5 million
- The funds will support ongoing opportunities such as subsea buoyancy products and the expansion of its Corrosion Technology business
- Matrix Composites and Engineering shares are trading down 5.6 per cent at 17 cents at 1:09 pm AEDT
Matrix Composites and Engineering (MCE) has completed a $7 million capital raise to support growth amid the resurgent oil and gas market.
The funds will be raised via a two-tranche placement at 16 cents per share — an 11.1 per cent discount to MCE’s last closing price on November 24 of 18 cents.
Placement funds will expand Matrix’s balance sheet and support ongoing opportunities such as subsea buoyancy products and the expansion of its Corrosion Technology business.
Matrix Chief Executive Officer Aaron Begley said the revival in the oil and gas market was reaching levels that had not been seen since 2016.
“Our Corrosion Technology business has delivered approximately $6 million in revenue over the past 6 months, and we continue to experience increasing demand,” Mr Begley said.
“The new funds will facilitate an expansion of this business to meet the demand, as well as allowing us to deliver on new high tech composite material solutions across the resources sector, which together can underpin sustained long-term revenue growth.”
Under the first tranche of the placement, Matrix will issue around 15.3 million shares, raising approximately $2.5 million.
Tranche one is expected to settle on December 6.
The company is also seeking to issue a further 28.4 million shares under a second tranche which will help raise an extra $4.5 million.
Completion of tranche two is subject to shareholder approval, which will be sought at a meeting in mid-January 2022.
Matrix Composites and Engineering shares were down 5.6 per cent at 17 cents at 1:45 pm AEDT.