Rights Issue raises just under $2.0 million
Syft Technologies Rights Issue raises just under $2.0 million
News release, 14 January 2009, Syft Technologies Limited, Christchurch, New Zealand
Christchurch-based Syft Technologies Limited (Syft) today announced that it had raised $1,910,554.96 from its Rights Issue to existing shareholders. The company issued a Prospectus and Investment Statement on 1 December 2008 to raise capital to realise the market potential of its Selected Ion Flow Tube Mass Spectrometry (SIFT-MS) technology.
Syft’s chairman, Hon Ruth Richardson said, “This is an excellent result in the prevailing market conditions. It demonstrates strong shareholder support for the company which is particularly encouraging, given that our largest shareholder, Canterprise Ltd, was never expected to take up their Rights.”
The Rights Offer closed on Friday, 19 December 2008 and owing to the timing coinciding with the holiday season, allotment of shares was deferred until Tuesday, 13 January 2009. The new Shares have the same rights as and rank equally with the Company’s existing ordinary Shares.
“While the capital raised is sufficient for the immediate future and will underwrite the company’s operations through to profitability, we are currently in discussion with several entities who are interested in investing in Syft, taking up the balance of the Rights under the Offer.”
The Offer provided shareholders with the opportunity to participate in a pro-rata renounceable Rights Issue whereby each Eligible Shareholder received 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.
The Company’s shares last traded at $0.10cents per share on 12 January 2009. Syft’s shares are quoted on Unlisted, the Internet-based securities trading and communications facility, see: www.unlisted.co.nz.
Syft 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 Offer was on the same terms as the Private Placement, giving existing shareholders an opportunity to participate as requested at the AGM.
The proceeds will enable the company to repay its BNZ Working Capital Facility and to expand its sales force, including a full, in-market presence in the USA. It will also fund the continuing development of new products and market applications, by providing working capital to meet an anticipated growth in orders, and provide additional protection for its intellectual property.
Syft is forecasting trading revenue of around $5.2 million in the year to 31 March 2009 and expects to become profitable in financial year 2010.
“Sales achieved in the second half of this financial year and the quality of prospects exceeds expectations, gives us confidence that the Company has now moved beyond its start up phase, where capital raised was primarily dedicated to fund developmental costs.
“Looking ahead, Syft has the potential to achieve annualised sales in excess of 100 units within five years. While this is an ambitious goal, our recent sales record suggests it is achievable. Having now raised the capital required, the Company is well-placed to realise the potential of its proven technology,” Ruth Richardson said.