Solco to raise $1.4m in placement with German bank

Welshpool-based water and power solutions company Solco Ltd has agreed to place 8 million shares at 18 cents each with German investment bank Gebhard & Co. Wertpapierhandelsbank AG.

Since late February this year more than 45 per cent of Solco share capital has been traded on the German market, according to a company statement to the ASX released late yesterday.

The news comes after the company announced an estimated loss before income tax, depreciation and amortisation of $2.3 million for the 2005-2006 financial year following a review of operations and the resignations of both the chief executive and chief financial officers in April.

A statement sent to the Australian Stock Exchange at the time indicated the company expected to improve its gross margins in the coming year through improved marketing and streamlining.