SRG Global (ASX:SRG) raises further $5m in SPP

• SRG Global (SRG) raises an additional $5 million through a share purchase plan (SPP)
• Eligible shareholders were able to apply for up to $30,000 worth of new shares and SRG says applications exceeded the targeted $5 million
• While the company had the right to accept oversubscriptions, it will undertake a pro-rata scale-back of applications to the $5 million cap
• The raise follows a $46.4 million institutional placement that closed back in February, with proceeds going towards the acquisition of ALS Asset Care
• SRG shares are down 1.99 per cent, trading at 74 cents at 10:34 am AEDT

SRG Global (SRG) has raised an additional $5 million through a share purchase plan (SPP).

Following a $46.4 million institutional placement that closed back in February, SRG has completed an SPP, through which eligible shareholders applied for up to $30,000 worth of new shares.

SRG said the SPP received strong support from shareholders with applications exceeding the stated target size of $5 million.

While the company had the right to accept oversubscriptions, it decided the SPP would remain capped at $5 million.

SRG Global Managing Director David Macgeorge said the company was pleased to receive “substantial” interest and support from its shareholders.

“The proceeds from the SPP together with the recently completed placement ensure we continue to maintain a strong balance sheet whilst delivering on our strategy of step change growth in recurring Asset Maintenance Services”.

Last month SRG told investors that proceeds from the raise would be used to partially fund its acquisition of ALS Asset Care.

The new shares will be issued under the SPP on March 15 and are expected to commence trading on the ASX the following day.

These shares will rank equally with existing SRG shares along with being eligible for a two cent per share interim dividend declared on February 16.

SRG shares were down 1.99 per cent, trading at 74 cents at 10:34 am AEDT.