- Traffic Technologies (TTI) has paid off $6 million of debt, following a recent capital raising
- The company raised a combined total of $7.19 million, including $3.4 million through a rights issue, which allowed it to pay off a significant portion of its debt, including interest to ADM Capital
- Additionally, the funds allowed the company to reduce interest costs and strengthen the balance sheet for future growth
- Traffic Technologies says it’s working towards reducing debt further in 2022
- Company shares dipped 3.33 per cent, trading at 2.9 cents at 3:30 pm AEDT
Traffic Technologies (TTI) has paid off $6 million of debt following a recent capital raising.
Traffic Technologies raised a combined total of $7.19 million recently, including $3.4 million through a rights issue.
The company says recapitalisation has allowed the company to pay off a significant portion of its debt, including interest to ADM Capital.
“The repayment of a large portion of our debt to ADM Capital represents a significant milestone for the business with immediate benefits to our bottom line,” said Managing Director of Traffic Technologies, Con Liosatos.
The repayment of debt to ADM Capital is expected to result in an annualised interest saving of up to $1.2 million.
On top of this, the funds have resulted in the company reducing interest costs and strengthening the balance sheet for future growth.
The company said the balance of the funds raised have gone towards paying the costs of the offer and working capital.
“The company is committed to reducing our debt profile further through 2022 as well as driving continued contract wins and recurring revenue growth,” Mr Liosatos said.
Traffic Technologies says it’s working towards reducing debt further in 2022.
Company shares dipped 3.33 per cent, trading at 2.9 cents at 3:30 pm AEDT.