Sprintex has raised $1.3m from current shareholders and directors to purchase production equipment and parts inventory for its recently completed range of e-compressors and industrial blowers.

This will allow the company to accelerate the rollout of initial productionat15,000 units a year of its fuel cell electric compressors and industrial blower ranges to meet the expected increase in global demand.

Marketing for Sprintex’s (ASX:SIX) new E-compressor range has already commenced with exhibiting at trade shows internationally resulting in multiple new projects for the clean energy technology sector.

It will also focus its initial production capabilities on the more mature markets for wastewater treatment and general-purpose industrial compressors and blowers due to its expectation of major and increasing revenue streams from these sectors.

“We are delighted to move forward to volume production of our exciting new product ranges and particularly the wastewater aeration units, which we expect to carry the company to profitability in FY2024,” managing director Jay Upton said.

“Since recapitalising the company some three years ago significant R&D, engineering, prototyping and testing has been undertaken to develop a suite of compressor platforms which the company believes are the most efficient in the world, in addition to being the lightest, highest power density and most durable.

“The company is now ready to transition to higher production volume to meet expected global demand for its range of e-compressors, fuel cell compressors and industrial blowers.

“Interest is growing rapidly in our products for the developing clean energy sector, but we see faster and more reliable revenue growth for Sprintex in the more mature industrial sector.”

Capital raising

Under the capital raising, certain current shareholders and directors will subscribe for 28.89 million shares priced at 4.5c each – a 11% premium to the 20-day volume weighted average price of the company’s shares.

These investors will also receive one free attaching option exercisable at 10c and expiring on 30 June 2025 for every two shares subscribed.

Separately, the company is offering shareholders the opportunity to subscribe for shares priced at 4c each to raise a further $500,000.

This share purchase price also includes one free attaching option under the same terms as the capital raising for every two shares subscribed.

Issue of shares under both offers to directors is subject to shareholder approval.

High efficiency products

The company’s G15 water treatment  compressor includes its proprietary ‘Smart Pulse Aeration’ (SPA™) technology. SPA, for which the company has lodged a worldwide patent application, allows the integral PLC to vary the air output based on the oxygen content of the water, which reduces energy wastage and ensures high efficiency of the process.

In addition to the initial energy savings from its high efficiency direct drive technology, it saves around 30% energy over traditional compressors and improves the oxygenation efficiency of the same volume air delivery to the body of water.

These units are also able to provide efficient water oxygenation in 50% deeper ponds than conventional industrial blowers and offer up to four times the service life of conventional industrial blowers commonly used in water treatment plants.

Meanwhile, the G15 Turbo Blower  has the additional benefits of being 50% lighter, 30% smaller and 10dB quieter than conventional units in the same application.

 

 

 

This article was developed in collaboration with Sprintex, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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