Plexus Holdings said it has agreed the terms of a conditional placing to raise £6 million ($8.5 million) before expenses, by way of a placing of 9,230,770 new ordinary shares at a price of 65 pence per ordinary share to new and existing investors.
The placing is intended to strengthen Plexus’ balance sheet during the current down cycle and to provide Plexus with the flexibility to support further development of its product portfolio.
“The proceeds of the placing will be applied across a number of the company’s areas of activity to ensure that Plexus is well placed to take advantage when sector activity resumes,” the company said on Monday.
In particular, the company’s board believes that the net proceeds of the placing will enable Plexus to:
– pursue existing global opportunities (beyond the company’s on-going North Sea operations) and to continue to support Plexus’ activities in new regions – Asia, Russia and North/South America;
– progress the Python Subsea Wellhead development programme towards a target trial in 2016;
– support on-going development of POS-GRIP product suite (including production and subsea applications);
– strengthen Plexus’ working capital position during the down cycle; and
– channel targeted R&D spend towards complementary products (such as WellTreeTM, Xmas Trees) and the decommissioning market.
The placing is conditional upon shareholders’ approval being obtained for the granting of the authorities required to allot shares for cash on a non pre-emptive basis.