Specialist resources services provider Babylon Pump & Power Limited (ASX: BPP) has conducted as a successful fully underwritten non-renounceable pro-rata to raise $6.36 million and a placement to professional and sophisticated investor to raise $1.04 million.
Funds raised will be used to support future growth initiatives and the redemption of $4.5 million of convertible notes in the company.
Babylon has enhanced governance and strengthened its Board with the recent appointment of Jamie Cullen to the Board as independent Non-Executive Chairman.
A concurrent strategic review has identified opportunities to deliver growth and improve margins for the Company with an increased focus on higher margin specialty rental and industrial & environmental services.
The funds raised via the Entitlement Offer and Placement will be used to strengthen the company’s balance sheet enabling it to execute strategic initiatives of growing the specialist equipment rental fleet and expanding water management capabilities.
The company will continue to execute profitable maintenance contracts while reducing exposure to lower margin contracts with the redeployment of capital and resources to higher margin rental and industrial services.