ai Limited raises $6.2m for working capital/acquisitions

Perth-based automotive manufacturer ai Ltd has raised $6.2 million to be used to provide working capital and/or fund acquisitions, with management currently conducting due diligence work on several opportunities.

The capital raising is through the placement of 18.8 million fully paid ordinary shares at 33 cents per share. The shares have been issued to sophisticated and institutional clients of Tricom Equities Ltd.

The company said it's two operating divisions, aiAutomotive and aiConstruction have enjoyed strong profitability in recent times and subsequent to the completion of the sale of all non core assets the board has adopted a policy of paying strong fully franked dividends.

In addition to the share issue, the company also proposes, subject to shareholder approval, to grant 6 million options to executive directors (or their nominees). These options are to be issued in two equal tranches with exercise prices of 35 and 40 cents and an expry date 5 years from the date of the grant.

A notice of meeting to deal with this proposal will be dispatched to shareholders shortly.

At market close, shares in ai were 37 cents.