06/08/2009 - 12:09

Automotive Tech plans $2.7m raising

06/08/2009 - 12:09

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Malaga-based Automotive Technology Group plans to raise around $2.7 million through an entitlements issue after a proposed convertible notes capital raising was scrapped last month.

Malaga-based Automotive Technology Group plans to raise around $2.7 million through an entitlements issue after a proposed convertible notes capital raising was scrapped last month.

Today, ATG said it will undertake a one-for-one entitlements issue with each new share priced at 2.5 cents.

ATG said three of its major shareholders - chairman Rick Siemens' China Automotive Holdings, Euro Mark Ltd and director Steve Apedaile's entities - have agreed to subscribe to their full entitlement, representing 52 per cent of the issue.

Additionally, ATG has entered into unsecured loans totalling $1.4 million with the same three shareholders.

"These loan funds will be deemed repaid upon the allotment of their respective entitlements under the entitlement issue," ATG said.

Funds will be used to provide ATG with interim working capital while it secures an alternative to the $5.5 million convertible note capital raising, which was scrapped after a proposed subscriber said they were unlikely to meet their obligations.

Shares in ATG were unchanged at 9.5c at 13:48 AEST.

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