RCS - Avingtrans PLC - Additional Investment in Magnetica

AvingtransAnnouncement

18/01/2023 07:00

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RNS Number : 0088N  Avingtrans PLC  18 January 2023

18 January 2023

Avingtrans Plc

("Avingtrans" or the "Group")

Additional Investment in Magnetica

 

Avingtrans PLC (AIM: AVG), which designs, manufactures and supplies critical
components, modules, systems and associated services to the energy, medical
and industrial sectors, announces that shareholders of Magnetica have
approved an increase to Avingtrans' ownership as part of a capital raising.

The Board of Magnetica has made the following announcement:

Following an Extraordinary General Meeting of the shareholders of Magnetica on
16 January 2023, a resolution in relation to the capital raise was carried.
Obtaining approval from non-Avingtrans shareholders cleared the final hurdle
in the process to enable an increase of Avingtrans' voting power in Magnetica
and the provision of financial benefits to Avingtrans.

On 30 November 2022, Magnetica Limited (the "Company") announced a capital
raising totalling A$11.1M at A$0.05 per share. The Company proposed to retire
A$4.35M of debt (loans from Avingtrans) by converting them to equity and the
raising of A$6.75M of new funds. The new funds will be used to support its
ongoing operations, primarily being the continuation of its compact MSK
(musculoskeletal) extremity MRI system commercialisation activities.

The outcome of the capital raise will see the:

 1.  retirement of debt on the Company's balance sheet, by converting A$4.35M of
     loans into equity and issuing new shares to Avingtrans;
 2.  issuing of A$0.54M of new shares to non-Avingtrans investors, both new and
     existing, who took up the opportunity to participate in the capital raise via
     both a Placement and Share Purchase Plan; and
 3.  drawdown of A$6.21M of new equity funding from Avingtrans in tranches in the
     coming year, with new shares being issued for each tranche.

The Company plans to allot the shares for items 1 and 2 above on the 27
January 2023, once remaining administration tasks have been completed.

Avingtrans' ownership in Magnetica will increase from a current 61%
shareholding in the Company to 74%, once all of the funding tranches have been
drawn down.

 

Enquiries:

 Avingtrans plc                                          01354 692391
 Roger McDowell, Chairman

 Steve McQuillan, Chief Executive Officer

 Stephen King, Chief Financial Officer
 Singer Capital Markets (Nominated Adviser and Broker)   02074 963000
 Shaun Dobson

 Alex Bond

 Oliver Platts

 IFC Advisory (Financial PR)                             020 3934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

 

About Avingtrans plc:

Avingtrans designs, manufactures and supplies original equipment, systems and
associated aftermarket services to the energy, medical and industrial markets
worldwide.

Business units

 Hayward Tyler - Luton & East Kilbride, UK and USA, China and India

 Specialises in the design, manufacture and servicing of performance-critical
 motors and pumps for challenging environments.

 Energy Steel, Inc - Rochester Hills, Michigan, USA

 Energy Steel, part of the Engineered Pumps and Motors Division of
 Avingtrans plc, has been serving the nuclear power industry since 1982 with
 capabilities in equipment fabrication, material supply, precision machining,
 engineering, and repair services. Through strategic OEM partnerships, it also
 provides solutions for obsolete nuclear components and support for the most
 complex projects.

 Stainless Metalcraft Ltd - Chatteris, UK and Chengdu, China

 Provider of safety-critical equipment for the energy, medical, science and
 research communities, worldwide, specialising in precision pressure and vacuum
 vessels and associated fabrications, sub-assemblies and systems.

 Booth Industries - Bolton, UK

 Designs, manufactures, installs and services doors and walls which can be
 tailored to be: blast &explosion proof; fireproof; acoustically shielded;
 high security/safety; or combinations of the above

 Ormandy Group, Bradford, UK

 Design, manufactures and servicing of off-site plant, heat exchangers and
 other HVAC (heating, ventilation and air conditioning) products

 Composite Products Ltd - Buckingham, UK

 Centre for composite technology, parts and assemblies, serving customers in
 industrial markets.

 Magnetica Ltd - Brisbane, Australia

 Magnetica Limited specialises in the development of next generation MRI
 technologies, including dedicated extremity MRI systems and MRI system
 components. Magnetica has successfully built and tested a compact, integrated
 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging.
 Commercialisation of this system (and others) is on-going. Magnetica's
 structure now includes two other business units:

 Scientific Magnetics - Abingdon, UK

 Designs and manufactures superconducting magnet systems and associated
 cryogenics for a variety of markets including MRI and provides services for
 Nuclear Magnetic Resonance instruments.

 Tecmag Inc, Houston, USA

 Designs, manufactures and installs instrumentation, including consoles, system
 upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear
 Magnetic Resonance (NMR) systems.

 

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