OTAQ (LON: OTAQ) is raising cash and moving from the standard list to the Access segment of the Aquis Stock Exchange.
OTAQ has raised £2m via a placing at 4p a share, while a four-for-five open offer could raise up to £1.2m. The open offer closes on 28 October. There is also a broker option that could raise up to £400,000 if there is enough demand.
In order to raise the cash, the nominal value of the shares is being reduced from 15p to 1p. Every four new shares taken up will come with a warrant exercisable at 12p.
The fundraising is dependent on shareholders agreeing the move to Aquis, which is planned for 9 November.
OTAQ was formed after a reversal of the business into shell Hertsford Capital and joined the standard list in March 2020. The placing price at the time was 57.5p. Last December, a placing raised £1.38m at 22p a share. The share price slumped from 9.5p to 4.25p after the latest announcement.
The company dates back to 2005 and has developed products used in the aquaculture, geotracking and offshore sectors.
Previously the core product range was acoustic deterrent devices for the fishing sector under the Sealfence brand, but the business is being refocused. Regulation in Scotland has effectively closed that market to the technology and there could be regulatory changes in Chile.
In aquaculture, OTAQ has developed sonar technology that scans shrimps, live plankton analysis systems and water quality monitoring software.
The geotracking operations have developed a rail personnel and asset safety and sports trackers. Offshore products include the Oceansense leak detection system and a range of newer marine products. OTAQ expects to make a positive interim EBITDA compared to a loss in the corresponding period last year. Management is hopeful it will win additional orders in the second half and that new products will help sales next year.