- Eco-friendly bioplastics developer SECOS Group (SES) has received firm commitments to raise $15 million through a placement
- 88.24 million fully paid ordinary shares will be issued to institutional and sophisticated investors at 17 cents each
- The placement was oversubscribed and received strong support including from Director Don Haller Jr who subscribed for US$100,000 (roughly A$138,535) — however, this is subject to shareholder approval
- SECOS will use the money for product expansion and plant optimisation, research and development, increased marketing and sales and for working capital
- Company shares have dropped 6.41 per cent to trade for 18.3 cents
Eco-friendly bioplastics developer SECOS Group (SES) has received firm commitments to raise $15 million through a placement.
88.24 million fully paid ordinary shares will be issued to institutional and sophisticated investors at 17 cents. The issue price represents a 12.8 per cent discount to the last traded price on September 7.
Pleasingly, the placement was oversubscribed and received strong support from leading institutions as well as existing shareholders and institutional investors.
“This exceptionally well-supported placement will allow SECOS to hit the ground running in FY21 to deliver on significant opportunities to increase production and sales of the company’s compostable and biodegradable products,” Executive Chairman Richard Tegoni said.
Director Don Haller Jr has subscribed for US$100,000 (roughly A$138,535), however, this is subject to shareholder approval at the annual general meeting.
SECOS will use the funds for capital expenditure comprising production expansion and plant optimisation, research and development, increased sales and marketing as well as for general working capital.
The placement follows recently-signed contracts with NASDAQ-listed Jewett-Cameron Trading Company’s subsidiary, JS USA, and fellow ASX-listed supermarket giant, Woolworths Group (WOW).
“The funds raised will support a significant expansion of SECOS’ compostable bioplastics productions to meet the needs of customers globally,” Richard stated.
Company shares have dropped 6.41 per cent to trade for 18.3 cents at 11:39 am AEST.