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| Date | 18 Jan 2023 |
| Time | 07:00:06 |
| Category | Miscellaneous |
| ID | 0088N |
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:
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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; |
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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 |
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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:
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Avingtrans plc |
01354 692391 |
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Roger McDowell, Chairman Steve McQuillan, Chief Executive Officer Stephen King, Chief Financial Officer |
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Singer Capital Markets (Nominated Adviser and Broker) |
02074 963000 |
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Shaun Dobson Alex Bond Oliver Platts |
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IFC Advisory (Financial PR) |
020 3934 6630 |
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Graham Herring Tim Metcalfe Zach Cohen |
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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
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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. |