SRT Marine Systems PLC on Monday said it had agreed a £31 million investment and finance support package from existing investor Ocean Infinity.
The global provider of maritime domain awareness systems explained that the short-term ‘bridge support package’ allows SRT to satisfy the performance bond requirements of a $213 million contract.
Announced earlier this month, the substantial contract with a ‘sovereign government ministry’ is expected to be signed and commence on October 31 and provide the foundation to support the proceedings of three other contracts worth an additional $210 million.
As part of the finance package Bath-based SRT will, pending shareholder approval, issue 21.5 million new ordinary shares priced at 35 pence share, raising £7.5 million.
SRT shareholders will be able to purchase up to 7.5 million shares altogether, with Ocean Infinity reserving a minimum of 14 million shares.
The company stated that it has agreed to complete the placing at ‘the earliest opportunity in November.’
Ocean Infinity will also provide a guarantee in the form of a cash loan of $21.4 million enabling SRT to to issue a contract performance bond of similar value.
Upon completion of the placing, Ocean Infinity Chief Executive Oliver Plunkett will join the board of SRT as a non-executive director.
SRT Chief Executive Simon Tucker said: ‘This financing package enables SRT to make a truly transformational commercial leap and very significantly accelerate the financial performance of the company through the simultaneous delivery of over $400 million of contracts and with capacity for more.’
Shares in SRT are up 0.8% at 39.80 pence on Monday afternoon in London.
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