Amaero International upsizes institutional placement to $25M

Amaero International (ASX:3DA) has completed an upsized institutional placement, raising $25 million.

This follows strong support from existing cornerstone institutional shareholders and new Australian and international institutions.

The offering was priced at 35 cents per share, representing a 4% discount to the last closing price.

The net proceeds will primarily fund the purchase of capital equipment, including a second atomiser, and improvements to the company's headquarters in Tennessee.

The pro forma cash balance post-transaction is approximately $37.2 million, facilitating the company's planned capital investment program as it ramps up production.

"We would like to thank existing institutional shareholders for their strong ongoing support and welcome new Australian and international institutional funds to our register," commented Hank J. Holland, Chairman and CEO of Amaero.

"Given that investor demand substantially exceeded the initially targeted raise of $20 million, the company elected to upsize the offering to $25 million," Holland added.

The placement involves issuing approximately 71.4 million new fully paid ordinary shares to eligible sophisticated, professional, and institutional investors.

This represents 13.1% of Amaero’s existing issued capital split into two tranches. The placement is managed by joint lead managers Curran & Co and Shaw and Partners, with Gilbert + Tobin acting as legal advisor.

The use of proceeds is detailed with $12.8 million allocated to capital equipment and $10.8 million to renovations, among other costs.

At the time of reporting, Amaero International’s share price was $0.36.