Tribe Technology has raised £4.5m at 10p/share ahead of its AIM admission and small investors are being given the chance to apply for shares via a retail offer. They can subscribe for up to £400,000 of additional shares in the Northern Ireland-based manufacturer of mining equipment.
There is a potential global surface drilling market of $2.2bn. There are 1,400 RC drilling rigs used in exploration and grade control.
Nominated adviser and broker Allenby is acting as coordinator of the offer. The minimum subscription is £50 and the offer closes at 12pm on 25 August – although it could close early if oversubscribed.
The retail offer is available through intermediaries listed on the website: https://www.bookbuild.live/deals/WJQKJ1/authorised-intermediaries. There are 25 currently listed, but nearly all of them are awaiting confirmation. The intermediaries include Hargreaves Lansdown, AJ Bell and Interactive Investor.
Autonomous drilling rigs
Tribe Technology was founded in Perth, Western Australia in 2019 by chief executive Charlie King prior to setting up a factory in Northern Ireland. It is developing autonomous drilling rigs. These rigs will help to improve safety and increase productivity.
Tribe Technology plc is the new holding company for Tribe Technology Group. This is an early-stage company with minimal revenues and making losses, but management says that there are orders worth more than £10.5m.
Prior to the flotation, an agreement with Anglo American has been announced for the deployment of a TTDS GC 700 RC drill rig.
There was a £150,000 provision for an onerous contract in the 2021-22 accounts of Tribe Technology Group and debt was £700,000 at the end of June 2022. There was cash of £232,000.
Most of the money raised will go towards working capital to enable the orders to be fulfilled, as well as on development and sales.
Investors have a chance to get involved at the start of a potentially significant business, but there are still risks at this stage of development.
