Applecross-based pipe services firm ShieldLiner Ltd will raise $2.8 million through a placement with Indian Ocean Capital as the company refocuses its business strategy.
Applecross-based pipe services firm ShieldLiner Ltd will raise $2.8 million through a placement with Indian Ocean Capital as the company refocuses its business strategy.
The company, which previously had an exclusive focus on its ShieldLiner trenchless pipe lining technology, recently won the Australasian rights for the sale of glass reinforced epoxy pipe and the use of pipe repair technology Saertex, which company managing director Trevor Gosatti said marked the start of an exciting phase of development.
"We have already had success in winning supply contracts for GRE Pipes. We have won tenders of approximately $1 million, have submitted further tenders in excess of $10 million and identified potential future projects in excess of $35 million and since we commenced marketing," he said in an announcement.
The company announced it would operate as two distinct divisions, namely the "Trenchless Technology Contracting" business unit and the "Pipe Distribution and Installation" business unit, in March.
"Additionally, we continue to develop the proprietary ShieldLiner System, aided by a Commercial Ready Grant from the Commonwealth Government. We are on track to conduct further field trials for this revolutionary tool by December this year, and expect to deliver the first commercial application by December 2008," Mr Gosatti said.
The full text of a company announcement is pasted below
Integrated pipe services and supply company ShieldLiner Limited ("ShieldLiner"or "the Company") has signed an underwriting agreement with Indian Ocean Capital ("IOC") to raise $2.8m.
The offer is 25.5m new Shares at an issue price of 11 cents per share, with one free attaching Option for every two shares subscribed. The Options are exercisable at 15c per Option on or before 26 June 2008. In addition, the Company will issue 5.5m Options at an issued price of 1c each and these Options will also be exercisable at 15c per Option on or before 26 June 2008 ("the Offer") . The Company will apply to have both the Shares and Options listed on ASX.
IOC has agreed to reserve up to 1.81m shares and 0.909m attaching options for existing shareholders ("Priority Offer").
The Offer is conditional upon shareholder approval to be sought at a shareholders meeting, which is expected to be held in late June 2007.
The Closing Date for acceptances and payment is 5.00pm EST on 18 June 2007.
The Board of ShieldLiner is positioning the Company to provide a broad range of leading edge technology based services and products for the repair and rehabilitation of Australia's ageing water and sewerage infrastructure.
This change in business strategy, from the former exclusive focus on developing the proprietary ShieldLiner System, is undertaken to provide the Company with immediate sources of revenue and earnings.
ShieldLiner Managing Director Trevor Gosatti said ShieldLiner was about to embark on an exciting phase of development.
"We recently purchased 100% ownership of Premium Pipe Services Pty Ltd. ShieldLiner was appointed Australasian agents for the sale of glass reinforced epoxy pipe ("GRE Pipes") manufactured by Fiberglass Systems Inc. of San Antonio, Texas, one of the world's leading suppliers of composite pipes, and acquired the Australasian rights for Saertex, a world leading pipeline repair technology," he said.
"We have already had success in winning supply contracts for GRE Pipes. We have won tenders of approximately $1 million, have submitted further tenders in excess of $10 million and identified potential future projects in excess of $35 million since we commenced marketing.
The Company commissioned their first Saertex-liner unit in April 2007 and have already completed several successful jobs, generating initial sales revenue.
"Based on this initial success, we are bidding for, and expect to win tenders for pipe repair in the near future using the Saertex tool," said Mr Gosatti.
"Additionally, we continue to develop the proprietary ShieldLiner System, aided by a Commercial Ready Grant from the Commonwealth Government. We are on track to conduct further field trials for this revolutionary tool by December this year, and expect to deliver the first commercial application by December 2008."
"It is also the intention of ShieldLiner to enter into discussions with international parties to source other trenchless technology tools."
Chairman of ShieldLiner, Jim McDonald, a former Managing Director of Australian Pipeline Trust, said,"ShieldLiner is emerging as an integrated pipe services and composite pipe supply business.
"We offer leading edge technology based pipe repair services and equipment to infrastructure owners.
Through the GRE Pipes unit, we offer a real choice of new generation high performance fibre glass pipe to a broad range of infrastructure, oil and gas, petrochemical and industrial applications.
We also intend to pursue growth by additional selective acquisitions and expanding our range of service and product supply offerings," he said.