On 6 December 2018, Vivid Technology Limited (ASX: VIV), a provider of technology-focused solutions to Australian renewable energy companies announced that they are raising capital for their growth initiatives. The company is raising capital through the placement of ordinary shares for which it has received a commitment from the sophisticated and professional investors based on section 708 of the Corporation Act 2001. The company at present is successful in raising funds around $1.84 million through the placement of shares. The issue price of each share is 3.0 cents. The company further expects an issue of 61 million new shares as a part of placement.
The commitment is being received from the Directors of the Company who has faith in the growth of the company as per their strategic plans. They are ready to take 6.2 million shares for $0.185 million. Apart from that, the company is also offering Share Purchase Plan to its existing eligible shareholders as per the terms and condition same as that of placement for the fully paid ordinary shares. They expect that a total equity raising before cost worth $2.5 million.
The eligible shareholder who is interested in the share purchase plan can acquire new fully paid ordinary shares maximum up to $15,000. The last date of participation in share purchase plan was 7:00 pm (Melbourne time) on 5 December 2018.
The company at present is focusing on current work at hand. They are also looking forward to capitalizing these works from its existing customers. Apart from that, the company is working hard to maintain its order book both domestically and internationally maintaining the momentum. Apart from the existing customers, the company is exploring leads by visiting customer sites to broaden the company’s product range for which they are raising capital.
At present, the company has $1.5 million excess of unvoiced orders. Based on this, it expects that it will receive a further $5 million purchase order from its existing and frequent customers within the next 4 to 5 months.
The company has given a consistent negative performance since its inception. In the ten years journey of the company, the performance was -64.64%. In 5 years, the performance of the company was -31.25%. Since last year, the performance of the company is -21.43%.
For the year ended 30 June 2018, the company incurred a net loss of $5,395,230. The balance sheet of the company is healthy. However, year on year increase in the accumulated losses has impacted the balance sheet of the company. By the end of the year, the net cash available with the company was $605,747.
By the end of the trading on 6 December 2018, the market price of the share tumbled by 6.061%. The last traded price was A$0.031 with the market capitalization of A$15.7 million.