Proventec raises £1.5m
STEAM cleaning group Proventec has raised £1.5m through a share placing.
The Liverpool-based company raised the cash by placing 3 million new ordinary shares at 50 pence pr share with existing and new investors.
The company said it would use the funds to add to its machine portfolio with a new product and to strengthen the company’s balance sheet.
The company will also pay back a £500,000 short term loan it secured for working capital earlier this month with an unnamed European institutional investor. Amounts drawn under the facility had an interest rate of 16% a year and were repayable on 30 September 2009.
David Chestnutt, chief executive of Proventec, said: “The funds raised will enable the Company to further develop its product offering. Following customer demand, we are currently developing an improved industrial steam machine which will be less than half the price of existing technologies.
“Proventec is in a good position to take advantage of the significant opportunities within the healthcare and industrial markets.”
The company will seek shareholder approval for the share placing at a general meting on July 31.
