XTEK Limited (ASX:XTE) has outlined an underwritten Share Purchase Plan (SPP) to raise $1.25 million to support the company's ongoing growth.
XTEK is focussed on the Australian Homeland Security Market.
The new securities will be offered at a 12.5% discount to the volume weighted average price (VWAP) over the 5 trading days prior to and including the closing date of the offer.
The issue price will be subject to a maximum price of $0.42 per security.
Patersons Securities is acting as lead manager to the offer and underwriter.
SPP structure and details
XTEK said that the pricing structure for the SPP has been determined having regard both to recent volatility in the company's share price and longer term share price levels.
Eligible holders are able to purchase between $1,000 and $15,000 of new shares.
- Opening Date: 3 June 2016 SPP opens, offer document is dispatched.
- Closing Date: 22 June 2016 SPP closes at 5.00pm (Sydney time) on this date.
- Allotment Date: 29 June 2016 new securities are allotted and issued.
- Dispatch Date: 30 June 2016 holding statements dispatched to security holders.
- Quotation Date: 30 June 2016 date when new securities are traded on the ASX.
Use of funds
- Agency business: Expansion of marketing, sales and contract support, focused predominately on Unmanned Aircraft Systems (UAS), following the recent success in being named as the preferred tenderer to supply UAS to the Australian Defence Force under Land 129 Phase 4 Program;
- Commercialisation of XTatlasTM technology: Investment to commercialise XTEK's proprietary aerial contextual video mapping technology. This is a prerequisite for the sale of sub-systems and software to a global market; and
- Working capital: Provide working capital required to grow the company's business, repay short term loans and meet its ongoing financial obligations.
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