Plexus raises £6m to help it through downturn

13th Jun 2016 16:20

(ShareCast News) - Oil and gas engineering services business Plexus Holdings announced on Monday it has agreed the terms of a conditional placing to raise £6m before expenses, by way of a placing of 9,230,770 new ordinary shares at a price of 65p each to new and existing investors.The AIM-traded firm said the placing is intended to strengthen Plexus' balance sheet during the current down cycle, and provide Plexus with the flexibility to support the capital requirements of its long-term strategy of becoming a leading international oil and gas services company, supplying a new standard of wellhead equipment and associated products for exploration, production and subsea applications.It said the proceeds of the placing will be applied across a number of its areas of activity to ensure it is well-placed to take advantage when sector activity resumes."We view the successful raising of £6m as testament to Plexus' standing as the provider of superior POS-GRIP jack-up rental wellhead equipment to the international oil and gas industry, and I would like to thank those existing and new shareholders who have supported this initiative and who recognise the company's significant growth prospects, particularly as we begin to focus on moving into the significantly larger land and platform and subsea markets," said chief executive Ben van Bilderbeek.At 1620 BST, shares in Plexus were down 2.23% at 65.75p.