27/08/2009 - 14:23

ATG raises $6.2m via private businessman

27/08/2009 - 14:23

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Automotive Technology Group has formed an agreement with Perth businessman, Michael Wilson to raise up to $6.2 million for the company in a two-part deal involving an entitlement issue and a share placement.

Automotive Technology Group has formed an agreement with Perth businessman, Michael Wilson to raise up to $6.2 million for the company in a two-part deal involving an entitlement issue and a share placement.

The capital raising consists of a one for one, non-renounceable rights issue at 5 cents per share worth up to $5.83 million and a placement of 8.5 million shares at 5 cents per share to raise $425,000.

The placement and underwriting agreement is potentially worth up to $6.25 million.

The deal is positive news for ATG which had previously announced an entitlement offer at 2.5 cents per share but this entitlement issue will no longer proceed in light of the deal with Mr Wilson.

The designer and manufacturer of the Sprintex supercharger range, and various performance parts for Ducati and Harley-Davidson motorcycles will use the funds to continue developing its technology and provide additional working capital.

More to come...

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