28th Oct 2024 13:51
(Alliance News) - SRT Marine Systems PLC on Monday said it had agreed a GBP31 million investment and finance support package from existing investor Ocean Infinity.
The global provider of maritime domain awareness systems explained that the short-term "bridge support package" allows SRT to satisfy the performance bond requirements of a USD213 million contract.
Announced earlier this month, the substantial contract with a "sovereign government ministry" is expected to be signed and commence on October 31 and provide the foundation to support the proceedings of three other contracts worth an additional USD210 million.
As part of the finance package Bath-based SRT will, pending shareholder approval, issue 21.5 million new ordinary shares priced at 35 pence share, raising GBP7.5 million.
SRT shareholders will be able to purchase up to 7.5 million shares altogether, with Ocean Infinity reserving a minimum of 14 million shares.
The company stated that it has agreed to complete the placing at "the earliest opportunity in November."
Ocean Infinity will also provide a guarantee in the form of a cash loan of USD21.4 million enabling SRT to to issue a contract performance bond of similar value.
Upon completion of the placing, Ocean Infinity Chief Executive Oliver Plunkett will join the board of SRT as a non-executive director.
SRT Chief Executive Simon Tucker said: "This financing package enables SRT to make a truly transformational commercial leap and very significantly accelerate the financial performance of the company through the simultaneous delivery of over USD400 million of contracts and with capacity for more."
Shares in SRT are up 0.8% at 39.80 pence on Monday afternoon in London.
By Christopher Ward, Alliance News reporter
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