GTE (LSE:GTE) - placing demonstrates there is life on the secondary AIM market
Gas Turbine Efficiency, the AIM quoted provider of proprietary cleantech systems for enhancing the performance of industrial and aviation turbines, announced the raising of £7m at 24 pence per share (current price 28p). In the current small cap climate this represents quite a vote of confidence in this small AIM industrial group, although it also results in quite a large dilution with the raising representing c28% of the enlarged share capital.
The net proceeds of the Placing will be applied to accelerating the Group’s growth in four principal areas:- (a) Supporting physical European and Middle Eastern expansion The Group is expanding its Swedish facility by three-fold to meet increased demand from Pratt & Whitney as well as handling new combustion and industrial product lines. (b) Adaptation of the Group’s products for new turbine customers (c) Accelerating selected development programmes for specific customers The Group’s strategy had anticipated the development of certain combustion, power augmentation and controls products in 2010 and 2011. However, given the recent successes of advanced solutions in the…