Imdex loss widens to $22.5m

Balcatta-based drilling services company Imdex has confirmed reports it is seeking to undertake a $35 million capital raising to pay off debt, while also announcing a net loss of $22.5 million for the 2015 financial year.

The company’s revenue rose 3 per cent, but was hit by lower activity in its oil and gas division due to the fall in oil prices.

Imdex is planning to raise $28 million in a placement and $7 million in a share purchase plan in order to pay off at least $25 million in debt, which is due by the end of September.

The company has engaged Euroz Securities to manage the placement.

“Should the company not raise the minimum net amount of $25 million from the planned equity raising, it will need to re-negotiate the ongoing funding and covenant requirements with its financiers and seek a deferment of the obligation to repay debt until such time as alternate funds can be sourced,” Imdex said in its annual report.

“The directors have taken steps during and subsequent to the year ended June 30 to ensure that the company can continue as a going concern.”

Imdex shares have been locked in a trading halt. They were valued at 24 cents each on Monday.