Syft Technologies issues Prospectus
Syft Technologies issues Prospectus & Investment Statement to raise
$5 million by way of a Rights Issue
News release, 3 December 2008, Syft Technologies Limited, Christchurch, New Zealand
Christchurch-based Syft Technologies Limited (Syft) today issued a combined Prospectus and Investment Statement to existing shareholders for a Rights Issue to raise capital, in order to realise the market potential of its Selected Ion Flow Tube Mass Spectrometry (SIFT-MS) technology.
Syft’s chairman, Hon Ruth Richardson said, “The Company has now reached the point where it can be confident of realising strong growth over the next few years and deliver on our commitment to achieving a significant increase in shareholder value. The number and quality of established sales and prospects in the near future far exceeds anything achieved previously. This has been underpinned by solid sales in the financial year to date and the Company is on track to achieving annual revenue of $5.2 million.”
Under the terms of the Offer, Shareholders have the opportunity to participate in a pro-rata renounceable Rights Issue whereby each Eligible Shareholder will receive Rights to subscribe for one Share in the Company at an issue price of $0.08 per Share for every three ordinary shares held by them as at 21 November 2008. Shareholders also have the right to sell or transfer any of their Rights Entitlements to any person or apply for additional Shares.
The Directors have not set a minimum level of subscriptions for the Offer to proceed which will close on Friday, 19 December 2008.
The Shares on offer will have the same rights as and rank equally with the Company’s existing ordinary Shares; each Share will be entitled to vote at a meeting of Shareholders and be entitled to the right to an equal share of dividends authorised by the Board and any distribution of assets of the Company.
The Company’s Shareholders approved a resolution to raise up to $5 million at the Annual Meeting on 24 September by way of a private placement. The Rights Issue is on the same terms as those proposed for the private placement and is designed to give existing shareholders an opportunity to participate as requested by Shareholders at the AGM.
Syft has engaged Hamilton Hindin Greene Limited (“HHG”), an NZX Primary Market Participant (sharebroker) of Christchurch, to assist Shareholders with the Rights Issue. HHG can be contacted toll-free on 0800 104 050 or 03 379 8420.
The Rights will be quoted on Unlisted, the internet-based securities trading and communications facility, from 3 December until Wednesday 17 December 2008.
The proceeds raised will be applied to repaying the Company’s BNZ Working Capital Facility, expanding the Company’s sales force, including a full, in-market presence in the USA with additional customer support, funding the continuing development of new products and market applications, providing working capital to meet an anticipated growth in orders, seeding the market with its latest range of instruments and extending and protecting its intellectual property.
Syft is forecasting trading revenue of around $5.2 million in the year to 31 March 2009 and expects that it may become profitable in financial year 2010, provided the projected targets are met.
While the Company’s ground-breaking technology has a number of commercial applications, it is currently targeting four sectors: Container Security; Medical; Food and Flavour; and Oil and Gas Exploration.
Ruth Richardson says, “Becoming the industry standard in any one of these sectors would secure the future success of the Company and generate a significant uplift in Shareholder value.
“Looking ahead, the Company has the potential to achieve annualised sales in excess of 100 units within five years. We have put in place the changes necessary to accomplish our business and marketing objectives and create significant Shareholder value. We now seek the capital required to make this a reality,” Ruth Richardson said.
No applications for securities will be accepted or money received unless the subscriber has received an Investment Statement.