XTEK Ltd (ASX:XTE) has opened its share purchase plan (SPP) for eligible shareholders, targeting to raise $1 million at an issue price of 45 cents per share.
The company recently concluded a $2.7 million oversubscribed placement which received strong demand from existing shareholders and new sophisticated investors.
The proceeds from the placement and the SPP will fund the acquisition of HighCom, XTEK’s expansion into the US and commercialisation of its proprietary technologies.
READ: XTEK reveals transformational US acquisition; aims to become leading ballistic armour player
The acquisition of HighCom supports XTEK’s strategy to commercialise its high-performance ballistic protection products, by accelerating XTclave based products’ entry into key target markets in the US.
Moreover, HighCom’s existing personal protective equipment expands XTEK’s proprietary product portfolio by growing its high margin ballistic armour product range, which is expected to enhance XTEK’s earnings, cash flow and profitability.
Through the acquisition, XTEK will gain direct access to HighCom’s well established US distribution network and existing manufacturing capability necessary to address the US military market.