XTEK announced on Monday (4 October) a successful underwritten placement of A$2.7 million to existing security holders and new investors through an institutional placement and that the company will make a pro-rata non-renounceable Entitlement Offer to all eligible security holders to raise approximately A$5 million. The Institutional Placement and the Entitlement Offer collectively seeks to raise approximately A$7.7 million.
The proceeds from the Placement and the Offer will be used as outlined below:
UAV’s: development of an Australian-made small VTOL Unmanned Aerial Vehicles for upcoming sales opportunities with the Australian Defence Force;
- Software: development of the next XTatlasTM actionable intelligence software applications;
- Ballistics: expand the range of hard armour plates and helmets made using XTEK’s patented XTclave process;
- Working capital: Provide working capital required to grow the Company’s business and meet its ongoing financial obligations for factory stock, corporate and transaction costs.
The placement to institutions, sophisticated and professional investors will raise approximately A$2.7million before transaction-related costs. The placement comprises the issue of new ordinary fully paid XTEK shares, at A$0.26 per New Share (“Offer Price”). The Offer Price of A$0.26 represents:
- 8% to the last close price of A$0.365 on, Wednesday 29th September 2021
- 7% to the 15-day VWAP of A$0.380 up to and including Wednesday 29th September 2021
The Placement will be undertaken in a single tranche within the company’s existing placement capacity under ASX Listing Rule 7.1. Settlement of the Placement is scheduled to occur on Friday, 8 October 2021, with the Placement shares scheduled to be allotted and to commence trading on Monday, 11 October 2021. MST Financial Services Pty Ltd acted as Underwriter and Lead Manager to the Placement.
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