27 Jun 2011

Scott Technology to raise capital

1:13 pm on 27 June 2011

Scott Technology hopes to raise $9.5 million through a rights issue to pay back debt and fund further growth.

The Dunedin-based company, which designs and manufactures automated production and process machinery, has announced a one-for-four rights issue.

The shares are being offered at $1.20 each - a 17% discount to Friday's closing price.

Two months ago, Scott Technology paid $4.4 million for a 51% stake in the Wellington-based electro-magnetic maker HTS-110.

Scott Technology managing director Chris Hopkins says part of the proceeds from the rights issue will repay that and other debt, and leave the firm in a strong position to maximise opportunities.

Mr Hopkins says there are good opportunities for the company in making equipment for meat processing and for the mining industry with laboratory sampling.