(Alliance News) - Infrastrata PLC on Wednesday proposed to raise up to GBP7.4 million through a placing and open offer of shares, with the cash to be used for acquisitions and working capital.
The infrastructure projects firm will issue 14.2 million shares at a price of 45 pence each through the placing to raise GBP6.4 million, and 2.2 million shares at the same price to existing shareholders through an open offer to raise GBP1.0 million.
Shares in Infrastrata were down 8.0% at 47.36 pence on Wednesday in London, giving it market capitalisation of GBP30.8 million.
The placing will be conducted in two tranches, with GBP4.0 million from the first tranche and GBP2.4 million from the second.
Proceeds from the share issue will go towards the acquisition of a robotic welding panel line and other yard refurbishment programmes in preparation for the award of fabrication contracts.
Additionally, the boost to working capital will improve Infrastrata's negotiating position on new contract opportunities.
"This placing reinforces the faith that our shareholders have placed in us and we are delighted to see many of them either maintaining their positions and, in some instances, increasing them. We are also pleased to see new shareholders support our growth strategy. As we move into 2021, it will come with its own opportunities and challenges. This placing provides us the platform to go into the new year with a strengthened capital base and in preparation for the opportunities that will arise immediately post-Brexit," said Chief Executive Officer John Wood.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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