Avingtrans PLC (LON:AVG), which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, has announced that shareholders of Magnetica have approved an increase to Avingtrans’ ownership as part of a capital raising.
The Board of Magnetica has made the following announcement:
Following an Extraordinary General Meeting of the shareholders of Magnetica on 16 January 2023, a resolution in relation to the capital raise was carried. Obtaining approval from non-Avingtrans shareholders cleared the final hurdle in the process to enable an increase of Avingtrans’ voting power in Magnetica and the provision of financial benefits to Avingtrans.
On 30 November 2022, Magnetica Limited (the “Company”) announced a capital raising totalling A$11.1M at A$0.05 per share. The Company proposed to retire A$4.35M of debt (loans from Avingtrans) by converting them to equity and the raising of A$6.75M of new funds. The new funds will be used to support its ongoing operations, primarily being the continuation of its compact MSK (musculoskeletal) extremity MRI system commercialisation activities.
The outcome of the capital raise will see the:
|1.||retirement of debt on the Company’s balance sheet, by converting A$4.35M of loans into equity and issuing new shares to Avingtrans;|
|2.||issuing of A$0.54M of new shares to non-Avingtrans investors, both new and existing, who took up the opportunity to participate in the capital raise via both a Placement and Share Purchase Plan; and|
|3.||drawdown of A$6.21M of new equity funding from Avingtrans in tranches in the coming year, with new shares being issued for each tranche.|
The Company plans to allot the shares for items 1 and 2 above on the 27 January 2023, once remaining administration tasks have been completed.
Avingtrans’ ownership in Magnetica will increase from a current 61% shareholding in the Company to 74%, once all of the funding tranches have been drawn down.