Structural Monitoring Systems Plc (ASX:SMN) Announces Private Placement
Private Placement Details
Structural Monitoring Systems Plc (“SMS” or “the Company”) (ASX: SMN) has secured a binding commitment to raise approximately AUD $1.337 million through a single tranche placement. The Placement involves issuing 2,571,418 new CDIs at an issue price of AUD $0.52 per CDI, which includes three attaching options per four Placement CDIs, exercisable at $0.78 until 30 November 2027.
The funds are primarily contributed by Drake Private Investments LLC, a New York-based hedge fund and long-term institutional shareholder of SMS. The placement was priced at a 10.64% premium compared to the last closing price of $0.47 on 9 January 2025.
Use of Funds and Future Outlook
The proceeds from this Placement will support several initiatives, including ongoing product development and manufacturing capacity expansion in avionics. This includes advancements in digital audio, radio, and loudspeakers, as well as enhancing the Company’s CVM™ technology. Funds will also address general working capital needs.
SMS Executive Chairman and CEO Ross Love expressed, “We welcome this significant additional investment from Drake and take it as reflecting their growing confidence in the Company’s achievements over recent quarters and the positive outlook ahead.” He added, “We look forward to sharing some information on achievements against the significant milestones we outlined in our recent investor presentation.”
Settlement of the Placement is anticipated to be completed on 15 January 2025, reinforcing SMS’s strong financial framework with minimal future funding requirements.
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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