leadf
logo-loader
viewXTEK Ltd

XTEK raises $9.2 million and launches share purchase plan; on track for record revenue growth

The company, on an unaudited basis, expects to achieve a record revenue of about $42.7 million in FY20, an increase of ~12.7% to FY19 revenue.

XTEK Ltd - XTEK raises $9.2 million and launches share purchase plan; on track for record revenue growth
Share purchase plan is targeting to raise up to $2 million

XTEK Ltd (ASX:XTE) has completed an oversubscribed share placement to institutions and sophisticated investors to raise about $9.2 million.

The placement comprises the issue of 13,291,802 new shares at 69 cents each.

XTEK’s placement will be followed by a share purchase plan (SPP), which is not underwritten, targeting to raise up to $2 million at the same price as the placement.

Shareholders who are registered as on Friday, August 7, 2020 (record date), with a registered address in Australia and/or New Zealand are invited to participate in the SPP, up to a maximum of $30,000 investment.

The proceeds from the placement and the SPP will be used to execute XTEK’s international ballistic strategy and commercialisation, including increasing XTclave manufacturing capability in the US which effectively doubles XTclave revenue capacity in anticipation of strong pipeline growth.

Further investment will also be made to accelerate growth in actionable intelligence and advanced composite materials businesses.

Unique actionable intelligence solutions

XTEK managing director, Philippe Odouard said: “We are pleased to welcome new institutional investors to our share register.

“Their support for this transaction reflects the endorsement of our financial performance, business strategy, progress made in commercialising XTclave products and exciting outlook.

“We look forward to accelerating our ballistics commercialisation strategy by increasing our manufacturing capacity in the US, effectively doubling XTclave revenue capacity.

“We are excited to continue commercialising our unique actionable intelligence solutions, which is gaining significant traction and market interest. In addition, we continue to leverage key collaborations to advance the use of our technology in advanced composite materials initiatives.

“Lastly, we are well-positioned to capitalise on the anticipated growth and look forward to executing our ballistics strategy to unlock the lucrative US defence market which provides a clear pathway to achieving our medium-long term target of A$100m revenue.”

Record FY20 results and updated FY20 earnings guidance

XTEK has provided an updated FY20 earnings guidance, following the initial FY20 revenue guidance announced on July 6, 2020.

The company, on an unaudited basis, expects to achieve a record revenue of about $42.7 million in FY20, an increase of ~12.7% to FY19 revenue ($37.9 million).

In addition, XTEK expects to deliver FY20 gross profit of about $9 million (FY19: $6.9 million), representing a FY20 gross margin of ~21% (FY19: 18%), and FY20 EBITDA of about $800,000 (FY19: $300,000).

The expected FY20 earnings are underpinned by the HighCom contribution in the US and ongoing SUAS (small unmanned aerial vehicle) supply and support.

Quick facts: XTEK Ltd

Price: 0.59 AUD

ASX:XTE
Market: ASX
Market Cap: $41.68 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of XTEK Ltd named herein, including the promotion by the Company of XTEK Ltd in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

XTEK's Phillipe Odouard says September quarter in the US was exceptional

XTEK Ltd's (ASX:XTE) managing director Phillipe Odouard tells Proactive's Andrew Scott the September quarter was strong with 'exceptional' progress in the US. The firm completed first deliveries of the XTclave™ plates, enhancing XTclave™ manufacturing capabilities in South Australia and...

1 week ago

2 min read