Structural Monitoring Systems (ASX:SMN) drops capital raise, announces new one

• Structural Monitoring Systems (SMN) cancels its previous capital raise which comprised a $10 million non-renounceable rights issue and announces a new one
• The company hasn’t disclosed why but is launching an underwritten non-renounceable rights issue of CDIs at 60 cents each to raise $6 million
• An oversubscription facility will also be put into place to raise a further $3 million in addition to a rights issue of option to raise $1.2 million
• At market close for the day, SMN is down 4.17 per cent and to trade at 69 cents per share

Structural Monitoring Systems (SMN) has dropped its previous capital raise and announced a new one.

In October 2021, the company announced it was aiming to raise $10 million through a non-renounceable rights issue to existing shareholders.

However, SMN has now cancelled that raise and is hoping to raise up to $6 million through an underwritten non-renounceable rights issue of 10,230,953 CDIs at 60 cents each. SMN will also put in place an oversubscription facility to raise a further $3 million.

Additionally, the company will offer a renounceable rights issue of options on the basis of one option for every 10 CDIs held at an issue price of 10 cents per option to raise
around $1.2 million.

“As a board, we appreciate the support of our existing CDI holders and have been mindful of providing existing CDI holders with the opportunity to maintain their investment in the company,” SMN told the market.

Notably, the directors of the company have spoken about their intention to subscribe for their full entitlement.

The company hasn’t revealed any details on how it will spend the money.

The entitlement offer and oversubscription facility will be made by a prospectus and the entitlement offer will be underwritten by Mac Equity Partners.

Structural Monitoring Systems is an Australia-based company, which is engaged in designing and manufacturing electronic products.

At market close for the day, SMN was down 4.17 per cent and to trade at 69 cents per share.