23/05/2012 - 15:33

Matrix seeking to raise $36.7 million

23/05/2012 - 15:33

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Matrix chief executive Aaron Begley.

One-time market favourite Matrix Composites & Engineering has launched a $36.7 million capital raising to strengthen its balance sheet and partially pay off its debts, after disclosing it would incur a loss this year.

Matrix announced today it would seek to raise $25.9 million through a share placement priced at $2.10 per share, while also launching a 1 for 15 entitlement offer to eligible shareholders, also at $2.10 per share, to raise up to $10.8 million.

The stock last traded at $2.35, and was trading at $3.60 in March and above $9.00 one year earlier.

The company disclosed today that it had breached a "lagging debt covenant" but its bank had agreed to waive the breach if it repaid $8.5 million in debts and revised the covenants.

It also disclosed an anticipated operating loss before tax of $20 to $23 million in the current financial year, on revenue of $140 to $150 million.

The outlook for 2013 is much brighter, with revenue expected to reacg $225 million and net profit after tax $23 million.

Argonaut Capital has been appointed as the sole lead manager and global book-runner to the offer.

Matrix said the funds would be used for general working capital, and to repay the $8.5 million debt.

Following the raising, the company will have $18 million in cash and working capital of around $50 million, with net debt/equity of around 7 per cent.

The company said its enhanced financial capability would enable it to pursue larger tendering opportunities.

The retail offer will be sub-underwritten by Matrix director Peter Hood, who will purchase up to 50,000 shares not taken up by other shareholders.

Matrix shares were suspended from trade on the ASX on May 18.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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