Pearl Global to raise $6 million

Tyre recycling company Pearl Global is raising $6 million to fund an expansion of its Stapylton productions plant.  

The ASX-listed company has already received commitments to raise $4 million from a share placement, with 115 million shares to be issued at a price of 3.5 cents each, representing a 14 per cent premium on the company's last closing price.

ROC Asset Management will maintain its interest in Pearl, subscribing for another $1.18 million, or approximately 34 million shares.  

The funds raised will be used for to purchase more plant and equipment for materials handling, further expanding the Stapylton facility.  

Bell Potter Securities is acting as lead manager to the raise.

The tyre recycling company is also looking to expand its board, with possible candidates for the positions already identified.  

Pearl is currently searching for a new chief executive, with updates expected in the third quarter of this year.

Shares in Pearl Global were trading at 4 cents at the ASX close.