Serpentine to raise $7m

West Perth-based Serpentine Technologies is seeking to raise $7 million to fund its acquisition of K-TIG and enable growth of the company’s welding-as-a-service business model.

Shares will be issued at 20 cents each, a 50 per cent discount to its previous closing price of 40 cents each.

Alto Capital will act as lead manager to the placement.

The proceeds of the offer will enable the company to roll out its business model.

Additionally, the raising will be invested in sales and marketing activities and infrastructure, and to undertake market development and business development activities in the vessel and piping industries.

In March, Serpentine said it signed a non-binding term sheet to merge with Adelaide-based K-TIG, which the company announced it would undertake a capital raising to fund.

Serpentine shareholders will have an approximately 10 per cent stake in the new the entity, which will be named K-TIG.

K-TIG owns the rights to a high-speed precision technology, which was developed by the CSRIO, and welds up to 100 times faster than traditional TIG welding.

Serpentine is set to fall under the K-TIG brand by August 16.