Advanced Engine Components raises $566k for working capital

Malaga-based Advanced Engine Components Ltd has raised around $565,000 for working capital through an issue to shareholders, the company announced today.

The full text of a company announcement is pasted below

Advanced Engine Components Ltd is pleased to announce the successful completion of the Share Purchase Plan announced on 15 November 2006.

Approximately 280 shareholders accepted the offer by subscribing $565,680 for 4,714,000 shares. The Directors of ACE are very pleased with the high level of shareholder acceptances.

The SPP raising, together with the $1.95 million share placement announced on 15 November 2006, provides ACE with $2.5 million of working capital. This working capital, together with sales in excess of $2 million invoiced or to be invoiced to ACE customers in the December 2006 quarter, will result in a breakeven EBITDA (earnings before interest, tax, depreciation and amortisation) for the current quarter.

With surplus working capital, a current quarter breakeven EBITDA and strong customer demand from strategic original equipment manufacturers, the ACE Board remains very confident of achieving a maiden profit and cash flow positive position for the 2007 Financial Year.

Subject to bank clearance the SPP shares are expected to be issued on or about 21 December 2006 with Australian Stock Exchange quotation shortly thereafter.

ACE is now financially positioned to benefit from the increased demand for its world leading Natural Gas Vehicle System kits and components. This demand is being driven by international environmental concerns, the price and supply security of oil and economic growth throughout Asia.