Matrix Composites and Engineering (ASX:MCE) reports it has launched a fully underwritten equity raising of $20.2 million to support various growth initiatives.
The company says it is aiming to raise $6.3 million (before costs) via an institutional placement offer, as well as an additional $13.9 million (before costs) through a 1 for 2.95 pro-rata accelerated non-renounceable entitlement offer. These offers are set to be fully underwritten by Bell Potter Securities.
Matrix notes the equity raising is expected to generate about 72.1 million new shares at an offer price of $0.28 per share, a 16.4% discount to the last traded price of $0.335, with shares comprising about 49.3% of Matrix’s existing issued capital and reported to be ranked equally with existing ordinary shares.
The equity will be deployed to expand into new markets and initiatives (floating wind and hydrogen), fund additional performance/warranty bond facility, fund new capex requirements for plant expansion for SURF product scale delivery, as well as for working capital support.
With the equity raising now planned, Matrix Composites and Engineering announces existing shareholders will be entitled to subscribe for 1 new share for every 2.95 existing shares at 4pm AWST on Friday 3 March 2023. Eligible institutional shareholders are also expected to be invited to participate in the institutional component of the entitlement offer being conducted today (1 March).
Matrix Composites and Engineering works across a range of natural resources sectors.
The applications for the use of composites across the hydrogen economy are broad.
Composite Materials have applications in green electricity generation, hydrogen production, intermediate hydrogen storage, fuel cells and transportation.
Matrix composite materials technologies offer several advantages when compared to conventional technology in these applications, including light weighting, non-corrosive properties, wide temperature ranges, durability and long service life.
Matrix’s materials technologies and products are specifically tailored to address issues with weight, corrosion, impact, and wear in the mining and resources sector. Applications include carbon fibre and impact resistant composites which significantly lighten structures and equipment traditionally made from steel; Kinetica energy absorption systems to protect critical infrastructure from impact damage; and advanced coating and lining systems that protect steel surfaces from corrosion for the life of operations.
From its head office in Australia and offices in the US, as well as a global network, the company is positioned to deliver complete turnkey solutions offerings with localised customer support.
Images: Matrix Composites & Engineering Ltd
