Verbrec (ASX:VBC) is further executing on its acquisitive growth strategy announcing a successful capital raise.

Engineering service provider Verbrec (ASX:VBC) has seen robust investor support for a successful $3 million capital raise lead by Morgans Corporate in Brisbane.

The company said demand for the raise was strong with 16,666,667 fully paid ordinary shares issued at $0.18 per share, representing a 9.4% discount on the volume weighted average price for the last 30 days prior to the company’s trading halt.

Executing growth strategy

Verbrec announced earlier this year it intended to focus on diversifying its revenue stream sources by growing revenue from long dated contracts and non-project based activities and bolstering sub-scale business units to achieve scale and overhead synergies.

This recent raise will be used primarily to fund the working capital requirements for the recent acquisition of training service provider Site Skills Group.

Site Skills has facilities in Brisbane, Gladstone, Darwin and Perth and provides training to companies in the mining, oil and gas, construction and engineering sectors.

It’s run around 200,000 courses over the last decade and trained more than 150,000 Australians

Verbrec will also use the capital to continue the commercialisation of its mining stockyard modelling and optimisation software suite, StacksOn.

Strong support from investors

Verbrec Managing Director, Linton Burns, said the overwhelming support of institutional, sophisticated and strategic investors showed the business was heading in the right direction.

“It is encouraging to see such great support for our Placement from investors which is a testament to the strength of our business model and growth strategy,” he said.

“We have made solid progress over recent months executing on our refocussed growth strategy including our Competency Training subsidiary completing the acquisition of assets from Site Skills, which is expected to triple the revenue of this business unit.”

As such, Competency Training represents a strategically important division for growth over the next financial year as the economy rebounds, people gain new skills to enter industry sectors like Mining and Infrastructure where the employment opportunities are strong and Competency Training delivers its courses from the  recently acquired locations in Darwin and Gladstone.”

“We are also focused on fully commercialising our wholly owned proprietary stockpile inventory software, StacksOnTM. With the strength of the Mining sector set to continue we see significant opportunity for StacksOn to further diversify our revenue streams and generate material margins.”

Strengthening share price

Verbrec’s share price has increased by more than 20 per cent over the last six months as it the company re-branded from LogiCamms and re-focused following the reverse takeover by fellow engineering and operations provider OSD.

This article was developed in collaboration with Verbrec, 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.