- Engineering product and solution provider Synertec Corporation (SOP) has entered a trading halt for an upcoming capital raise
- The company is expected to make the announcement by tomorrow and will be back to trading once it is released
- Last time the company went into a trading halt in 2017, it was about the sale of shares in Australian Gold Mines by Synergy Metals, a subsidiary of Synertec
- The capital raise will help Synertec achieve its long term goals of expanding in Australia and also internationally
- Company shares have been trading for 2.4 cents each since June 24
Engineering product and solution provider Synertec Corporation (SOP) has entered into a trading halt for an upcoming capital raise.
The company is expected to make the announcement by Wednesday, July 1 and will be back to trading once it is released.
Last time the company went into a trading halt was in 2017, and it regarded the sale of shares in Australian Gold Mines by Synergy Metals, a wholly-owned subsidiary of Synertec.
Last month, the company reported positive results from its COVID-19 response and ongoing operations.
Synertec has had a smooth transition to a remote workforce and has established a secure workflow from important infrastructure clients. It said it is working on a number of initiatives, which will improve its liquidity and capital reserves.
Despite the pandemic, the company has won several contract extensions and new contracts worth over $1 million in total.
Synertec provides engineering products and solutions to complex, high-risk and highly regulated industries, such as pharmaceuticals, critical infrastructure, oil and gas, water and defence.
At the end of the first half of the 2021 financial year, the company reported a revenue of $7.3 million and an operating loss after tax of $700,000.
The capital raise will help Synertec achieve its long term goals of expanding in Australia and also internationally in Europe, North America, Asia and the Middle East.
“We have ambitious goals for a relatively small organisation and in order to deliver on those, we have always said it would require a truly global reach,” CEO and Managing Director Michael Carroll said in February.
Company shares have been trading for 2.4 cents each since June 24.