Quickstep raises $17.3 million

Aerospace manufacturing company Quickstep Holdings has struck a $17.3 million funding deal, primarily through the issue of convertible notes to US based financier La Jolla Cove Investments.

The agreement comes alongside a $3.3 million share placement at $0.32 per share, which will be used as immediate equity.

When combined with a grant from the NSW government, the company's total fundraising is expected to reach over $30 million by the end of 2012.

Quickstep said the funds would be used for the preparation of its Joint Strike Fighter program and establishment of a manufacturing centre at Bankstown Airport in NSW.

Quickstep chairman Mark Jenkins said the fundraising represented an efficient mix of short and medium term equity with loans and grants.

"The Company believes that it needs a mixture of short, medium and long term facilities to meet its financing needs," he said.

"The Convertible Note Facility with La Jolla represents an excellent funding package due to the timing of draw-down, which will suit Quickstep's needs, and the certainty of commitment from La Jolla."