Solco raising funds for acquisitons

21/11/2011 - 10:40

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Perth-based solar power specialist Solco says it is feeling acquisitive, after launching a $4 million capital raising priced at 7 cents per share.

Executive chairman Dave Richardson said the funds would be used for the acquisition of other businesses or assets “should the opportunity present itself”.

The $4 million will be raised through a two-for-seven rights issue at 7 cents per share.

“Solco is being presented with a range of exciting opportunities for acquisitions as well as new business opportunities and the board wants to be in a position to capitalise on them, if they fit the company’s vision going forward,” Mr Richardson said in a statement.

“Solco is ideally positioned to make the most of the current conditions in the solar energy sector because of our long track, established brand, national scale and profitable operations.

“The carbon tax legislation will put solar back on the table for discussion for businesses as an option for carbon emission offsets and cost mitigation, especially as un-subsidised solar nears price parity with traditional electricity prices.”

The capital raising will be underwritten by Investorfirst Securities.

At 10:36AM (WST) Solco’s stock was down 5.5 per cent, at 8.5 cents.

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