SMS attracts new investor

08/02/2016 - 10:24

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Claremont-based technology company Structural Monitoring Systems says funds received from a new investor partner will be used to continue growth rather than bumping up overhead costs.

SMS attracts new investor
SMS develops intellectual property for products used in the testing and monitoring of the structural integrity of structures.

Claremont-based technology company Structural Monitoring Systems says funds received from a new investor partner will be used to continue growth rather than bumping up overhead costs.

SMS announced today it had raised $3.7 million through the placement of about 2.6 million shares at a slightly discounted $1.40 each, with the majority taken up by an unnamed Australian funds management institution.

New York-based hedge fund Drake Private Investments, SMS’s largest shareholder, and other current investors in SMS also participated in the raising.

In a statement, SMS said it didn’t need to raise the funds, but did so after the unnamed investor showed a material interest in becoming a strategic investor in the company.

“In the absence of this direct solicitation, additional funding for the company would not have been undertaken for some period of time,” it said.

“However, SMS has regularly communicated that funding needs could arise in the foreseeable future as the operational platform of the company expands to meet the commercial opportunities that are expected to materialise moving forward.”

SMS develops intellectual property for products used in the testing and monitoring of the structural integrity of structures.

It offers its products and technology to aircraft, ships, transportation infrastructure and power plants.

SMS also said existing corporate overheads would remain unchanged following the raising.

“The funds will be used solely for potential strategic purposes, and to provide a material level of readily available liquidity,” SMS said.

“The funds will not be used to meet the day-to-day operational requirements of the company, or for general corporate expenses.”

SMS shares were 3.2 per cent higher to $1.59 each at 10am.

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