More SMEs raise new equity as Covid bites

SME manufacturers are joining the rush to equity markets to help shore up their finances as the Covid-19 pandemic clouds the economic future.

Keytone Dairy Corporation is the latest to announce a capital raising on the Australian exchange, succeeding in raising $12.5 million through a share placement with sophisticated investors.

New shares are to be issued in the New Zealand company at 0.31 cents, a 19.42 per cent discount to the average price over the previous five days.

The company has also announced a share purchase plan for existing investors seeking to raise an additional $2.5 million.

The funds will be used for working capital, marketing, capital expenditure to expand output and potential acquisitions.

Meanwhile innovative portable X-Ray machine manufacturer Micro-X failed to raise the full amount it was seeking from investors under a non-renouncable entitlement offer of shares,

The company received applications for 12.9 million new shares worth $1.8 million, which was 31.7 million short of its target.

The shortfall will be allotted to investors in conjunction with the underwriters.

In April Micro-X raised $15 million in a share placement with institutions.

The company manufactures a cold cathode X-Ray emitter based on carbon fibre nanotubes, the most important innovation in fundamental X-Ray technology since its invention.

Picture: Keytone Dairy

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