Engineering group looks to raise up to £2.5m
Specialist engineering group, Pressure Technologies plc, intends to carry out a placing of new ordinary shares of five pence each in the capital of the company.
The placing will be conducted at a price of 30 pence per share in order to raise up to £2m (before expenses). It will comprise up to 6,666,666 new ordinary shares, representing about 21.46% of the existing issued share capital of the company.
In addition to the placing, there will be an offer made by the Sheffield-based company of new ordinary shares on the Peel Hunt Retail Capital Markets REX portal at the issue price to raise up to £0.5m (before expenses).
This aims to provide existing retail shareholders in the United Kingdom with an opportunity to participate in the company’s fundraising plans. The retail offer is not part of the placing.
Singer Capital Markets is acting as nominated adviser, bookrunner and broker to the company in relation to the placing. Peel Hunt LLP is acting as Pressure Technologies’ co-ordinator in relation to the Retail Offer.
Pressure Technologies explains the net proceeds of the placing and retail offer will be used to provide working capital headroom to support material purchases and other supplier payments for existing defence, offshore and hydrogen contracts, which are expected to be delivered in 2023.
The business has also confirmed today that James Locking intends to step down from his role as chief financial officer.
He will remain on the Board until 3 February 2023 and will support the Group in ensuring the completion of ongoing projects, including the FY22 Audit, and a smooth transition.
A spokesman for the group stated: “The Board would like to thank James for his contribution and service to the business over the past four years and wishes him every success for the future. A recruitment process for James’ replacement has commenced.”