Image source: Getty Images
The Silex Systems Ltd. (ASX: SLX) The stock price is in free fall today after the company provided an update on its capital raise.
As of this writing, shares of the nuclear power and semiconductor company are trading at $ 1.35, down 10%.
What did Silex announce?
Investors are heading for the hills after the Silex share price came out of a trading stop today.
In this morning’s press release, Silex announced that it had successfully completed an institutional placement. The offer aroused keen interest from national, international and uranium institutions, mobilizing $ 33 million.
Silex will issue approximately 26 million common shares as part of the offering, which represents approximately 15.5% of its total issued capital. The company priced each share at $ 1.27 each. This reflects an 11.8% discount to the last closing price of $ 1.44 traded on September 22.
In addition, the company launched a stock purchase plan (SPP) for retail investors to raise an additional $ 7 million. It will offer an issue price of $ 1.31, slightly higher than the institutional placement price to meet the requirements of the listing rules.
What are the funds used for?
The company will use the funds received from the fundraiser for several initiatives, including:
- Advance the SILEX uranium enrichment pilot demonstration project at the Global Laser Enrichment (GLE) test loop facility in the United States;
- Assessment and potential development of advanced nuclear fuel production opportunities with GLE;
- Increased production capacity of Zero-Spin Silicon for quantum computing;
- Develop additional applications of SILEX technology; and
- General working capital needs and strengthening of the company’s balance sheet.
Silex CEO and Managing Director Michael Goldsworthy said:
This fundraising secures Silex funding through 2024 to further advance our SILEX enrichment technology commercialization activities and focus on the Paducah uranium production opportunity provided by the exclusive state-based licensee. -United, GLE.
As the outlook for nuclear power continues to improve around the world and the demand for uranium, enriched silicon and other isotopes increases, Silex is well positioned to respond quickly and effectively to the opportunities as they arise.
Silex share price review
It has been a mixed year for the Flint stock, which has gone around in circles for much of the 12-month period. However, the company’s shares recently hit a 52-week high at $ 1.97 before falling, possibly due to profit taking.
The Silex share price is around 139% higher from the same period last year and is up 51.6% since the start of the year.