OTAQ seeks to raise £1.4 million

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“We have a number of growth opportunities that we are looking to maximise in 2022.”

On Wednesday, OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, announced its intention to conduct a placing to raise gross proceeds of £1.38 million through the issue of 6,272,729 new shares at a price of 22 pence per placing share.

The announcement comes on the same day the company declared its results for the six months to 30 September 2021, with revenues at £1.8m.

Read more: SealFence maker OTAQ eyes further acquisitions

In a release issued by the company, it claims the placing is required in order to address near-term working capital needs, strengthen the company’s balance sheet and to “take advantage of the significant accessible opportunities which the board believes are available to OTAQ in its addressable markets”.

Exciting time
Phil Newby, Chief Executive Officer of OTAQ, commented, “This is an exciting time for the business. Having established a portfolio of internally-developed technologies, we have a number of growth opportunities that we are looking to maximise in 2022.”

“Continued development and investment will underpin expected growth in existing and new markets, enabling the Company to establish new revenue streams that will afford increased visibility. We very much look forward to the next stage of our development and believe we are well placed to deliver against our ambitions.”

The placing is subject to the approval by the company’s shareholders.

Restructuring
The company also announces the restructuring of senior management team to increase focus on sales led strategy, including the appointment of a new Chief Commercial Officer.

Commenting on the results and prospects, Newby said: “This was an extremely busy period for the Group – with the focus on commercialisation, product development and securing orders with a view to underpinning revenue visibility on the back of an increased product suite and routes to market. 

“We have an exceptional technology set and are seeing increased demand in a growing number of geographies. The team has secured a number of new contracts and we believe that the momentum expected in the second half of the financial year will provide the basis for a step change as we move into the next financial period and beyond.”