Drilling technology firm Coretrack says its $8 million capital raising was heavily oversubscribed, resulting in the company taking an extra $2 million in subscriptions.
Coretrack said it would raise $10 million through the placement of 58.8 million shares at 17 cents per share, with a one for four listing option exercisable at 25 cents each.
Funds will be used to purchase auxiliary equipment to get Coretrack's GT3000 drilling rig ready for oil and gas drilling, modifications to its core level recorder system and for general working capital.
The placement, which was lead managed by Cygnet Capital, will be undertaken in two tranches.
Also, Coretrack has agreed to issue Cygnet 4 million options, also at 25 cents per share, subject to shareholder approval.
Once the placement is completed, Cygnet will also appoint a director to the Coretrack board.
At 11:50AM (WST) Coretrack shares were steady at 20 cents, after earlier dropping 7 per cent.
