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Verbrec (ASX:VBC) secures $3M placement

Industrial
ASX:VBC      MCAP $28.86M
23 April 2021 12:30 (AEST)

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Verbrec (VBC) has completed a $3 million capital raising with strong demand received from institutional, sophisticated and strategic investors.

The company raised the $3 million before costs, issuing 16,666,667 fully paid ordinary shares at $0.18 per share. The issue price represents a 9.4 per cent discount to the volume-weighted average price of Verbrec ordinary shares for the last 30 days prior to its trading halt on April 21. The new shares will rank equally with existing ordinary shares on issue.

Proceeds from the placement will be used to further commercialise Verbrec’s StacksOn software, including additional software development and the creation of a dedicated website and other marketing materials.

It will also assist in funding the initial working capital for the recently acquired Site Skills Training assets and further strengthens the company’s balance sheet to execute its strategic plan.

“It is encouraging to see such great support for our Placement from investors. This is a testament to the strength of our business model and growth strategy,” said Verbrec’s Managing Director, Linton Burns.

“We are also focused on fully commercialising our wholly owned proprietary stockpile inventory software, StacksOn. With the strength of the Mining sector set to continue we see significant opportunity for StacksOn to further diversify our revenue streams and generate material margins.”

Verbrec is up 10.5 per cent, trading at 21 cents at 12:00 pm AEST.  

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