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Manufacturing firm K-TIG secured binding commitments for a $4 million capital raise (before costs) via a private share placement, with the issuance of equity to company directors forming part of the placement still subject to shareholder approval.
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The total funding was achieved via issuing new equity to “institutional and sophisticated investors”, including existing organisations and family offices. Some K-TIG company directors also took part in the equity placement.
According to the company, K-TIG shares were issued at $0.35 per share as part of the placement, with an estimated 11,428,571 new shares issued. The equity has an expected release date of Friday, 18 February 2022.
“The Placement price of $0.35 represents a 6.66 per cent discount to the last traded price of $0.375 and a 4.38 per cent premium to the 15 day VWAP,” K-TIG’s ASX release stated.
Also, 428,571 shares are expected to be issued to two board directors “Ms White and Mr McIntosh”, which will be subject to shareholder approval.
”On behalf of the board I would like to thank both existing and new shareholders for their participation in the placement. The placement allows the company to accelerate execution of its strategic growth priorities both domestically and internationally across the stainless steel, defence and nuclear sectors,” Stuart Carmichael, chairman of K-TIG, said.
The issuance of new shares has been designated to support the ongoing growth of the company in the nuclear and defence space, while enabling the company to build greater strategic partnerships across the industry.
Earlier this month, the company confirmed that it would build a research and development facility within BAE Systems Australia’s Factory of the Future, where the company hopes to expand its robotic welding capabilities.
Adrian Smith, managing director of K-TIG, explained that the facility in the Tonsley Innovation District would not only support Australia’s domestic shipbuilding capacity but also support the enhance development of local industry.
“We are the smart welders of the future. Put simply, K-TIG’s advanced welding technology means welding is stronger, faster and more cost effective. A traditional multi hour weld can be done in less than four minutes to a higher quality and standard,” Smith said.
“We can capture and push data out across every single weld creating a digital footprint across a ship. This makes for high level repeatability and consistency, which means ships are built faster and cheaper.”
It is hoped that the collaboration will minimise the impact of worker shortages in the industry, particularly within welding. Construction on the Factory of the Future Line Zero at Tonsley is expected to commence early February.
[Related: Aussie manufacturer K-TIG to establish facility in BAE Systems Australia’s Factory of the Future]
