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STRATECH SYSTEMS ANNOUNCES RIGHTS ISSUE
Singapore , 30 September 2008 – Mainboard-listed Stratech Systems Limited (“Stratech” or “the Company”) today announced that it intends to undertake a renounceable non-underwritten rights issue (the “Rights Issue”) of up to 119,638,210 Rights Shares, on the basis of one Rights Share for every ten existing Shares held.
The Rights Issue will be pegged at $0.0 25 per share, which represents the last transacted price per Share on the Singapore Exchange Securities Trading Limited (SGX-ST) on 30 September 2008 . If fully subscribed, the Rights Issue exercise will raise about S$2.7 million for the company after deducting expenses.
The money raised will enable Stratech to boost its pace of development and growth by focusing on its “powered by Stratech” strategy to enable the Company to grow rapidly by commercialising its technological innovations and be for working capital.
Dr David K.M. Chew, Executive Chairman of Stratech Systems, said: “In light of the current uncertain economic conditions, this rights issue exercise will further strengthen our cash position and balance sheet. It would also allow our shareholders to further participate in the equity of the Company and at the same time allow it to be less reliant on external sources of funding, including drawing down on its debt and other credit facilities.”
The Rights Issue is subject to in-principle approval from the SGX-ST for the listing of and quotation for the Rights Shares on the SGX-ST, as well as shareholders’ approval.
Stratech Systems Limited (“Stratech”) was listed on the mainboard of the Singapore Exchange in 2000. It is principally engaged in the design, development, integration, implementation, maintenance and project management of information technology and advanced technology systems. The Group delivers large-scale complex, real-time, mission-critical systems in the areas of intelligent Vision, intelligent Transport Systems and e-Systems for governments and businesses.
Founded in 1989, the Group has established an impressive track record serving industries such as aerospace and defence, financial services, government, healthcare, homeland security and transportation (air, sea and land). The Group develops and implements advanced technology solutions that achieve significant business transformation and competitive advantage for its clients.
For more information, please visit www.stratechsystems.com
Stratech Systems Limited