Australia's SRJ Technologies drops on discounted capital raise

SRJ Technologies

24/07/2024 04:06

** Shares of SRJ Technologies  SRJ.AX  dive as much as 27.1%
to A$0.070, set for their worst day since mid-May 2023, if
current trend holds 
    ** The engineering services provider says it is undertaking
a capital raise of up to A$14 mln ($9.24 mln) via a placement
and share purchase plan 
    ** Co announced that it will acquire UK-based Air Control
Entech - which provides inspection services to the oil and gas
industry - for about A$8.6 mln 
    ** Capital raised will be used to fund the cash component of
the acquisition and rest for general working purposes 
    ** Issue price of A$0.055 per CDI (CHESS Depository
Interest) is at a 42.7% discount to the last closing price on
July 19 
    ** Shares hit their lowest levels since early July 
    ** Stock has risen 28% this year, as of last close

   ($1 = 1.5149 Australian dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))