Listed Perth company AnaeCo has announced plans for a $21.4 million rights issue pitched at lesss than half its current share price, as it seeks to complete its first waste treatment plant in Shenton Park.
The company is commercialising its patented DiCom technology, with its first site at the West Metropolitan Regional Council’s Shenton Park facility.
It has announced an entitlements issue at a price of 1.2 cents per share – about half the current value of the company’s shares.
The offer has been underwritten by Wilson HTM and Patersons Securities and will be made to eligible shareholders on the basis of 3.5 shares for every one held.
The company's major shareholders include engineerig group Monadelphous, with a 10 per cent stake.
In announcing the raising, the company said the proceeds would be used to fund expansion of the Shenton Park facility, expenses of the offer, and provide additional working capital.
At the end of December, AnaeCo had little more than $2.5 million cash in the bank.
Its cash balance had been boosted by a $4 million loan and $2.2 million awarded through the government’s R&D tax incentive refund scheme.
A further $2.7 million is expected to be provided this year as part of the overall R&D refund amounting to just less than $5 million.
Shares in the company closed today at 2.5 cents, giving the company a market capitalisation of $12.75 million.
