Philip Kirkham, Chief Executive Officer of Hardide plc, commented on the fundraise: “We are delighted to have received such strong support from investors for this Fundraising. The new funding will principally allow us to invest in up to two new reactors in the US which will, when deployed, create the capacity required at the Company’s existing facilities to accommodate projected new business. We are very mindful of ensuring that funds are deployed in a prudent manner to match our expectations of forthcoming demand. The loan we expect from MCEDC will further evidence support for the Company’s growth plans for the Martinsville facility and we thank them for the support Hardide has received since opening the facility in 2016.
“We are excited by the recent progress made regarding two new commercial agreements, one being a signed framework agreement with a major international operator in the oil and gas sector. The Company is also in the final stages of discussion with a well-known manufacturer of drilling and production tools. These agreements underpin existing market forecasts and the Board’s belief in the Company’s further growth.”
Hardide plc (LON:HDD), the provider of advanced surface coating technology, is pleased to announce that the Company has conditionally raised a total of GBP2.54 million via an oversubscribed fundraising at a price of 1.7 pence per new ordinary shares of 0.1p each (“Ordinary Shares”).
The Fundraising will enable the Company to make a number of capital investments in order to create capacity to take advantage of the demand expected by management.
The Fundraising comprises the Initial Fundraising to raise GBP1.72 million and the Deferred Fundraising to raise GBP0.82 million, all at a price of 1.7 pence per new Ordinary Share;
— Net proceeds of the Fundraising of approximately GBP2.45 million will be used primarily to:
o fund two additional reactors at the Company’s US facility;
o enhance existing equipment at UK and US sites;
o increase sales and marketing resource; and
o strengthen the Company’s balance sheet.
-- Management's expectation of future new business in US justifies additional capacity; -- Benefits from first additional reactor expected in FY19;
— Framework supply agreement signed with a major North American international operator in the oil and gas sector;
— Indications received from Martinsville-Henry County Economic Development Corporation (“MCEDC”) that it intends to advance a US$240,000 loan in support of Hardide’s expansion plans for its Martinsville facility;
— Financial results for the year ended 30 September 2017 expected to be in line with the Board’s expectations and with a cash balance of GBP1.21m as at that date; and
— Hardide expects to release its results for the year ended 30 September 2017 on 11 December 2017.
