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VORTEX PLACEMENT RAISES $1M
Apr 8, 2008
Commercial focus on Rehabilitation, Cleaning and Composite pipe solutions Talks underway with o Australian water authorities o Resource industry and o Oil and Gas industry Company well placed to seize these opportunities Vortex Pipes (ASX: VTX) is pleased to announce a placement to raise $1.0 million from clients of Indian Ocean Capital ("IOC") for working capital. The Company will issue approximately 13.333 million shares at 7.5 cents each. Of these, 7.25 million shares will be issued immediately, with the residual subject to shareholder approval. A notice of meeting to shareholders for this purpose will be held shortly.Vortex Pipes managing director Trevor Gosatti said the Company recently repositioned its operations to focus on three core areas of business, being pipe rehabilitation, pipe cleaning and new composite pipes.
The working capital will assist the Company secure business in these three core areas of expertise.
Specifically, the Company intends to apply the working capital to the following areas:
Cleaning
- Whirlwind waterless pipe cleaning trial contracts are currently being negotiated with several local and interstate authorities as an alternative to standard water based technologies.
Rehabilitation
- Under a contract with a local Perth council VTX plans to install two in-field drainage lines using the ShieldLiner relining technology using its latest industry standard epoxy resin and fibreglass matrix. This contract is the commencement of pre-commercial trials and the Company expects the ShieldLiner system to be operational by Q1 2009.
New Composite Pipes
- Under a $1.3 million contract with Strategic Marine VTX will complete the provisioning of glass reinforced epoxy pipes for the Floating Dock Facility under construction at the Australian Marine Complex in Henderson. Further orders are expected, particularly from the expanding WA Oil and Gas industry.
- Additional development of new composite pipes products to satisfy specific Resources and Oil and Gas industry requirements.
Operational working capital
Mr Gosatti said with the raising of working capital and the Company's new focus on specialist pipe cleaning, rehabilitation and composite pipe solutions, Vortex was now well placed to capitalise on specific infrastructure and construction opportunities.