TZL 0.00% 22.5¢ tz limited

News: TZ Limited raising funds to deliver further contract wins

  1. TZ Limited (ASX:TZL) is raising funds through a share purchase plan to deliver further contract wins in its Packaged Asset Delivery (PAD) and Infrastructure Protection (IXP) businesses.

    Shareholders will be offered up to $15,000 worth of shares priced at the lower of a 10% discount to 5-day VWAP or $0.125 each.

    There is no minimum or maximum amount to be raised under this offer.

    Proceeds will also be used to expand the company’s tender team to execute in response to new tender requests and fund the costs of marketing its Day Locker offering to existing accountable mail customers in the U.S.

    “TZ’s order book is now growing rapidly and includes some wins from globally recognised corporations,” chairman Mark Bouris said.

    “This growth has required the additional capital sought through this SPP in order to fund the delivery of these contracts.

    “Recent successful tender wins and revenue growth means the Company continues to build its working capital reserves out of retained earnings and is now rapidly approaching the point where it is cash flow positive.

    “We are very focussed on delivering returns for shareholders on this capital as we execute on our strategy of being a global technology business.”

    TZ has appointed Morgans as lead manager to the SPP.

    The company has recorded unaudited sales of A$7 million for the first half of FY2015, more than double the revenue for the previous corresponding period.

    With a backlog of approximately $4 million and a solid pipeline of secured business, the company is on track towards achieving its stated guidance of A$18M for FY2015 subject to schedules and deliveries.


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