ASX Announcement - LogiCamms has resolved to raise up to $10 million through the issue of up to 12.5 million ordinary shares to acquire established multidisciplinary engineering firm MPA Consulting Engineers (Australia) Pty Ltd.
LogiCamms Limited ("LogiCamms" or "the Company") is pleased to advise that the Company has resolved to raise up to $10 million through the issue of up to 12.5 million ordinary shares at an issue price of 80c per share to institutional and sophisticated investor clients of Hartleys Limited ("Placement"). The Placement monies will be used to pay the cash component of the recently announced acquisition of MPA Consulting Engineers (Australia) Pty Ltd ("MPA") by the Company and to strengthen the Company's balance sheet. The issue of new shares pursuant to the Placement is only subject to shareholder approval and shareholders approving the issue of 6.8 million ordinary shares to the vendors of MPA as part of the acquisition consideration pursuant to ASX Listing Rule 7.1, the minimum subscription of $3 million, and the satisfaction or waiver of certain condition precedents to the acquisition of MPA.
The general meeting to seek shareholder approval for the issue of new shares and for the participation of certain LogiCamms directors in the Placement is scheduled to be held on 21 January 2010. Details of the general meeting will be provided shortly.
Adam Keats, the Managing Director of LogiCamms said "We are very pleased with the response to the capital raising and the introduction to the register of some of Australia's leading institutional investors. The funds will enable LogiCamms to complete the acquisition of MPA and provide us with capacity to pursue further growth opportunities on the back of a strengthened balance sheet."
MPA is an established, multidiscipline engineering firm that specialises in providing civil, structural and mechanical engineering design services. MPA has a blue chip client base across the oil and gas, mining, energy and infrastructure sectors.