LONDON (Alliance News) - SRT Marine Systems PLC said Wednesday it has raised GBP3.0 million through a share placing and refinanced GBP1.2 million of short term loan notes.
The placing of 12.0 million shares at a price of 25 pence per share will provide the company with capital to fund new and ongoing projects.
Shares in SRT were up slightly Wednesday at 26.50 pence each. The new shares are expected to be admitted to trading on AIM June 4. FinnCap Ltd acted as nominated adviser, broker and sole bookrunner for the placing.
The placing was conducted with institutional and existing shareholders. The proceeds will also be used to accelerate product development.
The advanced maritime domain awareness technology developer said it will issue new three year loan notes to the same value as the refinanced short term loan notes. The refinancing was arranged by LGB Corporate Finance.
SRT gave an update to its "Asian project" where it expects the total contract value to be GBP25 million paid over four years. The financing is being finalised.
The company also said a GBP5 million project in the Middle East is being re-negotiated to expand the original project plans. The re-negotiation has resulted in the delay of GBP1.2 million due to SRT.
Chief Executive Officer Simon Tucker said: "Our maritime surveillance and monitoring systems business has transformed SRT. In addition to our day to day transceivers business we are now addressing substantial systems project opportunities around the world, with GBP30.5 million of ongoing projects and a validated pipeline of GBP419 million, of which GBP119 million are classified as being in the final procurement phase.
"Most of these projects are with sovereign governments and thus there are some initial working capital requirements in the early stages of each project, however going forward this will be minimised through the use of the UKTI export financing programmes which enables risk and working capital to be substantially reduced. This per project working capital from the UKTI export finance programs will be supplemented by the new capital we have raised today, which we intend to also use to accelerate our systems product development."
Srt Marine Sys. (SRT)