XTEK raises $12 million to advance international ballistic strategy and accelerate growth

XTEK Ltd (ASX:XTE) has completed an oversubscribed share purchase plan (SPP) to raise $2.9 million, taking overall capital raising funds to $12 million. The company launched the SPP with a target of $2 million but received overall valid applications for $2.9 million and decided to accept the oversubscriptions. This took the company's capital raising proceeds to around $12 million, including $9.2 million from a recently completed placement, which was also oversubscribed. Funds raised will be used to execute XTEK's international ballistics strategy and accelerate future business growth. Targeting $100 million revenue XTEK managing director Philippe Odouard said: “XTEK would like to take the opportunity to thank all shareholders for their continued support. “We are highly encouraged by the level of shareholder participation in the SPP, which resulted in raising more funds than our initial targeted amount. “We believe this reflects the strong endorsement of our strategy and our outlook. “We are now well-positioned to execute on our international ballistic strategy and accelerate further growth, providing a clear pathway to achieving our medium-long term target of $100 million revenue.” Overwhelming response Earlier this month, XTEK opened its SPP to raise up to $2 million through the issue of the new shares at the price of 69 cents a share. Following the overwhelming response for SPP, the company decided to accept all valid applications from 273 registered shareholders for 4.18 million new shares totalling $2.94 million. The new XTEK shares will be allotted and issued on Friday, September 4, 2020, with the trading of these shares expected to start on Monday, September 7, 2020. Accelerating business growth Proceeds 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. XTEK is engaged in providing high-quality frontline combatant products and tailored solutions to government agencies, law enforcement, military, space and commercial sectors. In addition, the supply and maintenance of Small Unmanned Aerial Systems (SUAS) remains a focus for XTEK.