Osborne Park based Advanced Braking Technology Ltd will aim to raise $4.6 million to fund a network of service centres in Kalgoorlie, the Pilbara, eastern states and South Africa.
Osborne Park based Advanced Braking Technology Ltd will aim to raise $4.6 million to fund a network of service centres in Kalgoorlie, the Pilbara, eastern states and South Africa.
The company will undertake a one for two pro rata renounceable rights issue to existing shareholders at 2 cents per share.
Full announcement below:
Perth-based advanced braking systems manufacturer, Advanced Braking Technology Ltd (ASX: ABV), has unveiled plans for a major regional expansion, announcing yesterday a A$4.6 million capital raising to underpin the establishment of a network of service centres in the Eastern States of Australia, Kalgoorlie, the Pilbara and South Africa.
The Company said today (Friday) that it would undertake a 1-for-2 pro rata renounceable rights issue to existing shareholders at 2 cents per share to raise approximately A$4.6 million before costs. Leading Australian broking firm Patersons Securities Limited has been appointed as Lead Manager to the issue.
Advanced Braking Technology's Managing Director, Mr Ken Johnsen, said the funds raised would provide a platform for the Company's next key growth phase through the establishment of a network of service centres to step up direct sales of its Sealed Integrated Braking System technology to the mining industry.
"We will be establishing service centres in the Eastern States, Kalgoorlie and the Pilbara region in order to enable us to capitalise on expansion opportunities in the resource sector, which is currently in the midst of a major growth phase," he said.
"These centres will incorporate a warehouse and service outlet, providing fitting capability and sales support to the mining industry in close proximity to their operations," he added. "Some of the funds raised will also be used to establish a direct selling model and service centres in South Africa."
Mr Johnsen said the rate at which service stations would be opened would be governed by the amount raised under the Rights Issue.
Advanced Braking Technology is focused on the commercialisation of its patented SIBS braking technology, a product that offers superior performance and safety benefits. Key drivers for the take-up of the Company's products are the cost savings generated by reduced maintenance requirements for the fully enclosed brakes, combined with a fail-safe mechanism which is becoming an integral part of many mining firms health and safety requirements.
The record date for the Rights Issue is 29 May, with the issue scheduled to close on 20 June 2008.
