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Sprintex (ASX:SIX) raises $4m to accelerate e-compressors

Consumer Discretionary
ASX:SIX      MCAP $10.87M
02 November 2021 09:51 (AEST)

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Sprintex (SIX) has received firm commitments to raise $4 million via a share placement to sophisticated and professional investors.

The automotive supercharger business came out of a trading halt today to announce the results of the capital raise.

SIX said it would issue a total of 53 million shares, priced at 7.5 cents per share, to participating investors on November 8.

Investors will also receive a free attaching option for every second share subscribed for, with a scratch price of 10 cents each.

Additionally, the company will offer shareholders a chance to take part in the raise through a $1 million share placement plan (SPP).

The SPP will offer shares at the same price as the placement and SIX will use the extra funds to advance its e-compressors.

Sprintex Managing Director and CEO Jay Upton said the $5 million would accelerate the system development and cover the production costs of the new products.

“We are very pleased with the strong demand for the placement and we would like to reward existing shareholders by enabling them to participate in an SPP on the same terms as the placement,” Mr Upton said.

“The Sprintex Board is excited to continue to develop premium products and expand the company’s global growth, particularly in the e-compressor sector where we have recently signed two significant revenue generating contracts.”

After resuming trading again on Tuesday, Sprintex shares were down 1.23 per cent at 8 cents each at 2:15 pm AEDT.

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