Sparc Technologies completes $2.25M share placement to fuel growth

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Image credit: Sparc Technologies Limited

Sparc Technologies has completed a share placement, raising AUD 2.25 million from firm commitments made by sophisticated and other professional investors.

The proceeds from the placement will be utilised for supporting Sparc’s investment in Sparc Hydrogen, field trials and R&D programs to support product development and commercialisation efforts for ecosparc, the company said in an ASX announcement.

The funds will also be used in the R&D for sodium-ion batteries and other projects, as well as general working capital,

Managing Director Nick O’Loughlin expressed satisfaction with the support received, stating, “Sparc is very pleased with the strong support it has received from new and existing investors, which we view as a continued vote of confidence in the unique technology portfolio that Sparc is developing.”

He added, “Importantly, this capital raise means that Sparc is well funded to support its investment in Sparc Hydrogen and progress commercialisation efforts for ecosparc.”

The capital raising involved the issuance of 10,227,273 new fully paid ordinary shares (New Shares) in the company at an issue price of 22 cents per share (AUD 0.22).

Sparc’s Directors subscribed for 454,545 shares in the Placement, amounting to A$100,000. However, the issuance of these shares to Directors is subject to shareholder approval, which will be sought promptly.

Additionally, participants in the placement will receive one free attaching unlisted option for every two shares subscribed for under the placement, with these options having an exercise price of AUD 0.35 and being exercisable on or before 29 April 2026.

The placement was conducted by Canaccord Genuity (Australia) Limited as lead manager.

Settlement of the Placement is expected to occur on Friday, 26 April 2024, with Placement shares expected to be allotted pursuant to Listing Rules 7.1 and 7.1A and commence trading on Monday, 29 April 2024.

An Appendix 2A confirming the exact allotments will be issued on the same date.