Orbital UAV is raising $4 million through the issue of approximately 28.6 million new fully paid ordinary shares at an issue price of $0.14 per new share to support its existing engine development programs.
In an ASX announcement, Orbital UAV said approximately $3 million of the capital raised will be allocated for the development of a larger engine platform, a high-volume low-cost engine, as well as further hybrid and power management system development.
Meanwhile, up to $1 million is expected to be used as general working capital to support Orbital UAV’s current product and service offering.
The placement’s first tranche, which will raise $3 million before costs, includes 20 million new shares to be issued to Gordon Martin, a majority shareholder and current executive director of Coogee Chemicals.
Meanwhile, 1.4 million new shares in aggregate will be issued to Coogee Executive Chairman Tim Martin and Coogee CEO and Managing Director Grant Lukey.
UIL Limited, Orbital’s largest shareholder, has committed to subscribe for $1 million in New Shares pursuant to the second tranche of the placement, via the issue of 7.1 million new shares, subject to shareholder approval.
“We are delighted to welcome Gordon Martin, one of Western Australia’s most successful business entrepreneurs, to the register of Orbital UAV. We also greatly appreciate the continued strong support of our major shareholder, UIL Limited and their investment manager, Mr Duncan Saville of ICM Limited,” said Orbital Chairman John Welbourn.
“The funds raised will be applied towards achieving Orbital’s desired engine development outcomes and provide appropriate working capital support as we work with our UAV partners aim to win the large upcoming UAV defence contracts that, if successful, will secure long-term production contracts for Orbital UAV.”
In addition to the capital raising, Orbital UAV also announced the resignation of Todd Alder as the company’s managing director and CEO after six years at the reins.
Andrew Mills, Orbital’s general manager for operations, will serve as the interim CEO pending a new permanent appointment.
“On behalf of the Board and Shareholders, I thank Todd Alder for his commitment to the Company over the past six years. Todd has built a highly capable executive and operational team at Orbital UAV and has been instrumental is assisting the Board to restructure the business to align with our focus on developing world-class UAV engines and securing new customers for our products. We wish Todd all the best as he embarks on a new chapter in his career,” Welborn said.
