Communications component manufacturers Filtronic are hoping to raise £2.1m in a share placing that will fund development of new products.
The international firm, which operates its broadband business from County Durham, has placed 9,716,000 new ordinary shares at 22.0 pence per share with existing investors and management, representing just under 10% of the issued share capital of the firm.
Following an approval from the UK Listing Authority and the London Stock Exchange it is expected that dealings in the placed shares will start from December 3.
The move is designed to create working capital to fund the development of new products such as amplifiers and antennas, which Filtronic hopes to start volume production of in the second half of its current financial year.
Alan Needle, chief executive of Filtronic said: “We are delighted by the support demonstrated by shareholders for the fundraising announced today. In line with our stated strategy of aligning with OEMs (original equipment manufacturers), we are seeing a pick-up in activity associated with the 4G rollout.
“This requires a greater investment to prepare for deployment. The funds raised will enable us to strengthen our working capital position to continue to pursue opportunities for both Wireless and Broadband. The Board is confident about the prospects for the business.”
In April Filtronic reported that ongoing conflict and unrest in Ukraine had unsettled its broadband business. The firm also reported that contract with a US customer had been delayed due to internal technical issues at the other party’s operations.
Filtronic reaffirmed that recent contract wins with electronics outfit Selex continued the two firm’s relationship.
Following the placing, Filtronic chief executive officer Alan Needle will hold 2.514% of the issued share capital, up from 2.312%.