Jul 21 2009
Antaria Limited announced it had reached an agreement with its strategic partner Energenics Holdings Pte Ltd of Singapore that will see Antaria increase its working capital reserves by an amount in excess of A$1.5 million and allows Energenics to have additional resources to continue with its own business development.
This working capital injection will be achieved by a private placement to the Energenics group to raise A$1 million (4,545,455 ordinary shares at an issue price of 22 cents per share) and the receipt of US$437,000 in relation to an irrevocable order for the supply of Cercat™ for progressive delivery between now and June 2010. Completion of the placement and receipt of all funds will take place in two weeks time.
Pursuant to a deed which varies the provisions of a Subscription Agreement entered into in June 2007, the balance of Energenics’ previously contracted subscription commitment, being a further A$2 million placement (9,090,909 ordinary shares at an issue price of 22 cents), has been deferred until June 2010.
Consistent with the terms of the Subscription Agreement, concurrent with each of the placement in two weeks and the deferred placement, Antaria will issue Energenics with one option for every three new shares subscribed for at an exercise price of 30.8 cents per share expiring on 30 June 2012.
Bruce Cameron, Executive Chairman of Antaria stated “We are pleased to have achieved this revised arrangement with Energenics, and their purchase commitment provides welcome predictability in relation to our production requirements for Cercat™ this year. Energenics restoring Cercat™ production at Antaria to levels achieved in the past would be an exciting development for both groups. This order, a multiple of four on last year’s volume, should be seen as a step on that path. More importantly, the additional working capital can be used to support the expected growth of our ZinClear- IM® sales which remains the primary focus of Antaria for now and the immediate future.”
Ronen Hazarika, CEO of Energenics issued the following statement; “I’m delighted that we are able to continue to support the growth of Antaria and increase our ownership also. We have made this substantial order commitment to underpin our business with existing customers, and also to be used to service the pipeline of opportunities maturing in the US & European transportation markets.”