Directa Plus to raise £4m in placing, open offer

12th Dec 2018 12:44

(Sharecast News) - Graphene-based products supplier Directa Plus announced plans on Wednesday for a share placing and open offer to raise around £4m, the net proceeds of which will be used to up investment to drive growth.The company said it plans to raise £3m through the issue of at least 6m new shares at 50p each, which is the same as the closing price on Tuesday. In addition, it intends to raise up to around £1m by way of an open offer to shareholders, to be launched shortly after the close of the placing.AIM-listed Directa said proceeds will be used to exploit commercial opportunities across a developing pipeline, build sales and marketing reach, develop the next generation of higher performing products, improve industrial layout and maintain competitive advantage and barriers to entry."Directa Plus has signed a number of agreements with customers and now needs additional working capital to fund capital expenditure to exploit the existing commercial opportunities, and fulfil existing customer orders under contracted agreements," it said."At the same time, the company wishes to invest further funds in its marketing and sales functions to maintain revenue growth and to promote the G+ brand which helps Directa Plus to add value to its customers' products and to grow overall margins."