Envirosuite announced the successful completion of an institutional placement of new ordinary shares in Envirosuite to expedite the growth of the EVS Water business.
Wilsons Corporate Finance Limited and Bell Potter Securities Limited acted as Joint Lead Managers to the Placement.
The Placement closed on Thursday, 2 December 2021, raising approximately A$10.5 million. The Offer Price was A$0.20 per New Share.
Proceeds of the Placement, will fund plans to accelerate Envirosuite’s investment into growing incremental sales in the high-margin EVS Water business to support its growth in the next 12 months. With strong market interest and validation of the EVS Water portfolio, with clients such as Water Corporation, a desalination plant in Asia and the recently announced GHD strategic agreements, the raising will support:
- Investment into further growing the direct sales team focusing on the Optimiser and SeweX products
- Additional product and technical roles to support growth and future development requirements
- Creation of further strategic partnerships to support implementation and success for this portfolio.
Envirosuite Chief Executive Officer, Jason Cooper, said: “This capital raising is about growth. The EVS Water business is on the cusp of a tremendous market opportunity as the benefits from our Environmental Intelligence technology platform are recognised more and more by Governments and corporates seeking to improve the well-being of their citizens and customers, and by key global industry service providers like GHD who recognise the benefits of our products. We are tooling up to meet that opportunity.
That we have been able to raise capital in a highly sought-after Placement at a materially superior price than the previous tranche of growth funding is indicative of the trajectory of the business and investors’ appreciation of the opportunity that lies before us”.
The Placement comprised the issue of approximately 52.3 million New Shares. The New Shares subscribed for under the Placement are expected to settle on Friday, 10 December 2021, with allotment and normal trading on ASX to commence on Monday, 13 December 2021. New Shares issued under the Placement will rank equally with existing Envirosuite shares on issue. The Placement was undertaken within EVS’ existing placement capacity under ASX Listing Rule 7.1.
Envirosuite expects ASX to lift the trading halt and for Envirosuite’s ordinary shares to recommence trading on ASX from market open today.
Further details of the Placement are set out in the Investor Presentation lodged on ASX on Friday, 3 December 2021. The Investor Presentation contains important information including key risks and foreign offer restrictions with respect to the Placement. For other questions, you should consult your broker, solicitor, accountant, tax adviser, financial adviser, or other professional adviser.