Balcatta-based brake system specialist Safe Effect Technologies Ltd has announced a $750,000 capital raising to expand the take-up of its braking system products in the mining industry.
Balcatta-based brake system specialist Safe Effect Technologies Ltd has announced a $750,000 capital raising to expand the take-up of its braking system products in the mining industry.
The capital raising is by way of the placement of 12.5 million shares to an Australian institutional investor at 6 cents per share.
This represents a 20 per cent premium on the market price of 5 cents.
The funds will bolster the company's cash reserves, and will be used to assist in a more rapid roll out of a wider range of its sealed integrated braking systems to the mining sector.
Safe Effect's key product is designed for application on Toyota Landcruisers used in harsh environments.
With the recent appointment of a South African distributor and greater vehicle diversity occurring on Australian mine sites it sees an opportunity to secure increased sales by offering replacement brake systems to a wider range of vehicle types.
There will be a large degree of commonality between all vehicle systems however each new vehicle application needs to be tested to ensure compliance with relevant mine and motor vehicle licensing standards.
Safe Effect has a manufacturing plant in Thailand and worldwide patents on its technology, as well as an intensive reseller network.
THE FULL ASX RELEASE APPEARS BELOW.
Safe Effect Placement of 12.5 Million Shares
Safe Effect Technologies Ltd (ASX Code SAF) announces that in response to an approach by an Australian institutional investor it has placed 12.5 million shares a price of 6 cents per share.
This represents a 20% premium on the market price of 5 cents.
The $750,000 raised from the placement will bolster the Company's cash reserves, of currently approx. $1 million prior to this raising, and will primarily be used to assist in a more rapid roll out of a wider range of the Sealed Integrated Braking Systems to mining companies seeking a safer braking solution.
The Company's key product is designed for application on Toyota Landcruisers used in harsh environments.
With the recent appointment of a South African distributor and greater vehicle diversity occurring on Australian mine sites there is an opportunity to secure increased sales by offering replacement brake systems to a wider range of vehicle types. There will be a large degree of commonality between all vehicle systems however each new vehicle application needs to be tested to ensure compliance with relevant mine and motor vehicle licensing standards.
