Orbital converts notes, saves cash

01/03/2016 - 15:13

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Industrial technology company Orbital Corporation has further strengthened its balance sheet after holders of convertible notes elected to take shares in the business, rather than a cash return.

Orbital Corporation managing director Terry Stinson.

Industrial technology company Orbital Corporation has further strengthened its balance sheet after holders of convertible notes elected to take shares in the business, rather than a cash return.

Terry Stinson-led Orbital announced today it had preserved over $9.5 million in cash reserves after noteholders elected to convert their notes into ordinary shares, with the company issuing 22.25 million new shares.

It also saved over $800,000 in interest as a result.

Each note was convertible into 125,000 shares at 40 cents each.

Coupling the savings with the proceeds of the $25 million sale of its stake in Synerject late last year, Orbital has expanded its capital base and strengthened its balance sheet.

“This balance sheet strength will support Orbital’s focus on building and investing in high growth businesses which are exposed to expanding global markets and have the potential to drive strong shareholder returns,” it said in a statement.

The news comes a day after Orbital announced a 210 per cent surge in half-year net profit to $2.58 million, with revenue up 84 per cent to $3.25 million.

However the company elected not to pay an interim dividend.

Orbital shares were 7.5 per cent higher to 50 cents each at the close of trade.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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