OTAQ seeks to raise £3.6m from share issue
Proceeds will strengthen balance sheet and support growth, says aquaculture technology developer
Aquaculture, geotracking, and offshore technology company OTAQ today announced a move to raise gross proceeds of £3.6 million by issuing new shares.
The UK company, which has offices in Scotland, England, and Chile, is best known in the aquaculture sector for its SealFence acoustic deterrent devices (ADDs), although ADDs are currently not being used by Scottish salmon producers.
The company is also the UK and Chile distributor for Canadian company Sedna Technologies’ Sensor Globe, a tennis-ball sized multi sensor that “flows with the fish” through wellboat pipework, etc.
OTAQ also produces its own water quality monitoring product that continually monitors a fish farm’s oxygen, temperature, and salinity levels and is in use with Japanese-owned salmon and trout farmer Salmones Antártica in Chile.
In a press release today, OTAQ it will use the net proceeds of its fundraising initiative to strengthen its balance sheet and support the group through its planned next stage of growth, further developing its portfolio of innovative technologies.
It added that the company already has a strong portfolio of products and is pursuing organic and acquisitive growth opportunities that will enhance reach and underpin further revenue growth as the company progresses towards profitability.
“Through proprietary engineering and via acquisition, OTAQ has created a skill base and leading portfolio of products with significant growth potential,” said chief executive Phil Newby.
“We see opportunities for these technologies within the global aquaculture, geotracking, and offshore sectors where applied innovation gives significant safety, productivity, welfare and competitive advantage opportunities to customers.”
Aquis Stock Exchange
The plans announced today by OTAQ include £2 million raised by way of a firm placing of 50 million new ordinary shares at the issue price of 4 pence per share.
Existing shareholders are to be offered the opportunity to participate in an open offer at the same price, all conditional, among other things, upon the approval of shareholders at a forthcoming general meeting.
OTAQ also plans to cancel its listing on the London Stock Exchange and apply for admission to the Aquis Stock Exchange (AQSE).
To enable the issue of the new shares under the Companies Act, OTAQ will also undertake a capital reorganisation to reduce the nominal value of existing ordinary shares from 15 pence per share to 1 penny per share.
OTAQ has also announced the appointment to the board of former technical director Harry Rotsch, who replaces Chris Hyde as chief technology officer. Hyde parted company with OTAQ earlier this year.