- Painting tools company Oldfields (OLH) launches a one-for-2.18 entitlement offer to raise $5 million
- The company plans to issue roughly 76.9 million new shares at 6.5 cents per share — the same price Oldfields last traded at prior to announcing the raise
- Oldfields will use the money to support growth initiatives and execute its strategic goals, which include expanding into new markets and optimising manufacturing capabilities
- Shares in Oldfields have been trading at 6.5 cents since October 6
Painting tools company Oldfields (OLH) has launched a one-for-2.18 entitlement offer to raise $5 million.
The company plans to issue roughly 76.9 million new shares at 6.5 cents per share — the same price Oldfields last traded at prior to announcing the raise.
Oldfields will use the money to support growth initiatives and execute its strategic goals. Specifically, the company said the funds would go towards expanding into new markets, optimising manufacturing capabilities, a digital transformation, and increasing scaffolding and paint stock.
“FY23 will see Oldfields embark on a robust strategic review and business transformation program that will involve incremental step changes targeted at improving competitiveness, performance and refining our focus on customer experience,” CEO and Managing Director Michael Micallef said.
“This capital raise is required to pave the way for new investment into initiatives that will see the Oldfields’ group harness sustainable and profitable growth, building a platform for future investment.”
Oldfields last week reported revenue of $8.92 million over Q1 FY23 and today said it expected to maintain its revenue performance for the remainder of the financial year.
Further, the company achieved positive underlying earnings before interest, tax, depreciation and amortisation of $700,000 over the September quarter.
Shares in Oldfields have been trading at 6.5 cents since October 6.