Defence technology group XTEK is raising $11.4 million from investors and also moving to join the C4 EDGE consortium of 17 SMEs that are developing a sovereign C4 (commend, control, communications and computing) environment for the Australian army.
The company announced it had successfully raised $9.2 million from an oversubscribed placement with institutional investors, and was now raising an additional $2.2 million via a share purchase plan with existing shareholders.
The funds will be used to execute XTEK’s international ballistics strategy including increasing US XTclave ballistic armour manufacturing capacity and accelerating growth in other key operations.
The company also updated its FY20 earnings guidance.
Revenue is expected to be $42.7 million, up 12.7 per cent on the previous year.
EDITDA for the year is expected to be $800,000 a rise of $500,000 on the previous year.
Meanwhile XTEK has joined Team C4 EDGE, a consortium being led by EOS Defence Systems, to deliver a demonstration of Australian industry capability of C4 technology in late 2021.
XTEK will use the opportunity to leverage unique capabilities of XTatlas, a new Small Unmanned Aircraft System (SUAS), developed by XTEK.
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