Structural Monitoring Systems Plc (ASX:SMN) Announces SPP Success
Security Purchase Plan Overview
Structural Monitoring Systems Plc (ASX: SMN) has announced that its recent Security Purchase Plan (SPP) raised a total of AUD $2.2 million, surpassing its initial target of $2 million. The strong demand from existing shareholders led the Board to accept all valid applications under the SPP, ensuring all shareholders participated at the same terms as the recent Placement to institutional and sophisticated investors.
Financial Capacity and Future Plans
The combined funds from the SPP and the recent $5 million Placement reinforce the company’s financial standing and aim to support its forecasts for the current year. The funding will facilitate near-term profitable growth and advance the certification of the Aft Pressure Bulkhead CVM technology expected in the calendar year ahead.
Operational Updates and CEO Comments
In addition to the funding boost, Structural Monitoring Systems recently concluded an internal restructure of its subsidiary, Anodyne Electronics Manufacturing Corporation. This is anticipated to yield over CAD $2 million in annual operating cost savings. Ross Love, Executive Chairman and CEO, remarked, “The results of the recent Placement and SPP have been very positive and provide critical funding to allow us to concentrate on high-return products and markets.”
He expressed gratitude to shareholders for their support and highlighted plans to utilise 80% of the new funding for product development. The issuance of new SPP CDIs and attaching options is scheduled for 10 December 2024.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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