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MYECO GROUP LTD — Capital/Financing Update 2019
May 1, 2019
65304_rns_2019-05-01_b3fac8f7-7e39-4756-a1aa-ff2dba7a2562.pdf
Capital/Financing Update
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ASX RELEASE
2 May 2019
PLACEMENT OF SHARES
The Board of sustainable and eco-friendly bioplastics manufacturer SECOS Group Limited (ASX: SES, “the Company”) is pleased to advise that it has secured commitment from a number of sophisticated investors and Directors of the Company for a Placement of shares, raising approximately $1.4m.
The Placement is subject to receipt of funds, and the allocation of Director’s shares will be subject to approval at the Company’s next General Meeting.
The Placement has been made at $0.04 per share, with one free attaching option for every two shares purchased. The options will be unlisted, with an exercise price of $0.06 per share, exercisable within a two-year term.
Funds raised via the Placement will supplement the Company’s existing cash balances and will provide the working capital required to ensure the Company’s growth objectives can be achieved. A strengthened balance sheet will position the company to take advantage of its strong sales pipeline with tier one customers and allow it to enter into potential partnerships to bring new products and applications to market over the coming months.
Since 30 June 2018, SECOS has reduced its debt from $6.2m to $2.6m and will hold $3.1m in Cash on its balance sheet at the completion of this placement.
SECOS Chairman, Richard Tegoni, said:
“During the last nine months we have come a long way in restructuring the Company and strengthening its balance sheet to prepare for what has been strong demand within the biopolymer market. This year has seen cash flow improving, lower debt, and reduced fixed overheads. The Company is experiencing improving sales and is focused on significantly improving margins to position SECOS for strong growth moving forward.”
For more information, please contact:
Richard Tegoni
Executive Chairman +61 411 110 901
SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6800 e: [email protected] www.secosgroup.com.au
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About SECOS Group Limited
SECOS Group Limited (ASX: SES) is a leading developer and manufacturer of sustainable packaging materials. Based in Melbourne, Australia, SECOS supplies its proprietary biodegradable resins, packaging products and high-quality cast films to a blue-chip global customer base.
SECOS holds a strong patent portfolio and the global trend toward sustainable packaging is fueling the Company’s growth.
The Company’s headquarters and Global Application Development Centre are based in Melbourne, Australia. SECOS has a Product Development Centre and manufacturing plant for resins and finished products in Nanjing, China. SECOS also has manufacturing plants for resins and for high quality cast films in Port Klang, Malaysia.
SECOS has sales offices in Australia, Malaysia, China and the US, with a network of leading distributors across the Americas, Europe, Asia, the Middle East, Africa and India.
SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6800 e: [email protected] www.secosgroup.com.au