Perth-based safety equipment developer Mobilarm has completed a $2 million convertible note issue, as it cranks up a new strategy focused on rental rather than sale of its man-overboard safety beacons.
Mobilarm and its UK-based subsidiary develop, manufacture and sell man overboard safety systems to the offshore oil and gas, commercial marine and defence industries, along with international government and regulatory agencies.
The company said while man overboard safety equipment was generally sold outright, an increased focus on the risks and costs related to search and rescue, along with prescriptive occupational health and safety requirements (especially in Europe), meant a new rental approach was needed.
“Mobilarm has pioneered a new rental approach that allows for a comprehensive annual re-certification of rescue hardware to maintain and upgrade its capabilities during the rental, and the ability to constantly provide the highest quality man overboard rescue solutions,” the company said.
Chief executive Ken Gaunt said the company’s new approach had already generated growth in its order book.
Sydney-based business investors Laurence Freedman and Fred Bart are among those who participated in the convertible note issue.
In September last year, Mobilarm signed a $1.8 million rental contract for the supply of its sMRT V100 beacon and life jackets to the international fleet of geoscience organisation Polarcus.
Mobilarm shares closed unchanged at 5 cents per share.
