Pharmaceutical product manufacturer Probiotec Ltd
(ASX:PBP) says it is undertaking a capital raising of approximately $12 million.
In addition to the placement, the company says its directors and senior management are undertaking a sell down of some of their shares to institutional investors.
Under the placement, 4.7 million shares will be issued to institutional investors at $2.55 a share a discount of 5.2 per cent from its closing price.
The funds raised will be used to expand its manufacturing operations to meet increased demand, both internationally and domestically, improve the group’s supply chain processes and take advantage of strategic opportunities that may arise.
Managing director Wayne Stringer says the capital raising will enable the group to rationalise its operations whilst at the same time securing the ability of the group to continue to grow and expand.
Mr Stringer says the expansion of Probiotec’s manufacturing operations will significantly improve its supply chain arrangements and drive a range of efficiencies and cost improvements into its businesses.
Probiotec’s profits have been increasing year on year for the past four years.
