Rapid welding technology manufacturer K-TIG has cut the amount of cash it is seeking from investors to fund the purchase of UK advanced manufacturer Graham Engineering Limited (GEL).
The acquisition marks the company’s entry into the United Kingdom nuclear decommissioning sector, with K-TIG vying for contracts to manufacture containers to house nuclear wastes.
The company told investors that it would now pay a reduced upfront cash payment, and varied payments including for property and working capital adjustments for the purchase of Graham Engineering.
As a result K-TIG issued a supplementary prospectus which seeks to raise $15 million through a public offer and the issue of 75 million new shares. The minimum subscription amount has been set at $13 million.
Previously the company sought to raise $25 million through the issue of 125 million new shares.
At the date of its statement to investors, K-TIG had received applications for 51,707,500 shares under the public offer.
However a separate offer to noteholders of up to 20 million conversion securities remains unchanged.
The total to be raised under the new arrangements is between $29.9 million and $31.9 million.
K-Tig shares are suspended from trading on the ASX until it complies with ASX rules governing takeovers.
Earlier this month K-TIG’s Keyhole TIG / GTAW welding technology, originally developed by CSIRO, was selected for trials by the US’s prime contractor and lead design yard for the Virginia class attack submarines General Dynamics Electric Boat.
Picture: Nuclear Advanced Manufacturing Research Centre/vessel welding