The AnteoTech Ltd (ASX: ADO) share price is rocketing during late afternoon trade. This comes after the company provided an update on its recent capital raising efforts.
At the time of writing, the nanotechnology company's shares are soaring 9.5% higher to 34.5 cents.
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What did AnteoTech announce?
Investors are driving up AnteoTech shares following the company's strongly supported share purchase plan (SPP).
According to its release, AnteoTech advised it has successfully completed its SPP, raising $8 million. Originally, the offer was listed for $4 million, however, the board decided to increase the SPP after receiving oversubscribed applications. In total, $37.1 million was counted by the SPP's closing date on 18 May 2021.
The remaining $29.1 million is set to be returned to shareholders, as the SPP was carefully scaled back.
As a result, approximately 30.7 million shares will be issued to eligible investors with allotment on 25 May 2021.
From the funds obtained by the SPP, $4 million will be added to the monies raised from its institutional placement. Together, those funds will accelerate the company's plans to establish a local manufacturing capability for its COVID-19 Antigen Rapid Test. Other tests in development are also expected to advance into commercial opportunities.
Furthermore, the remaining $4 million will be put towards the company's battery development program, including the commercialisation of AnteoX.
AnteoTech CEO, Derek Thomson commented:
We are extremely grateful for the support shown by our existing shareholders; this is a strong vote of confidence in our team and broader strategy. AnteoTech has a solid pipeline of tests in development and these funds greatly assist in accelerating the process of validating and registering the tests for introduction to the markets over the coming 18 months.
Having the ability to manufacture at scale in-house will provide a great advantage to AnteoTech in speed to market and de-risk manufacturing and the supply chain.
AnteoTech share price snapshot
Investors would no doubt be pleased with AnteoTech's share price performance, with year-to-date gains sitting above 210%. When looking at its 12-month chart, the company's shares have rocketed even further, up an astounding 1,300%.
Based on today's prices, AnteoTech commands a market capitalisation of roughly $634 million, with approximately 1.9 billion shares on issue.
