SRJ Secures $1.38M Institutional Funding at $0.004 per CDI for Growth Push
SRJ Technologies has secured $1.38 million from institutional investors in a fully underwritten entitlement offer, setting the stage for a strategic joint venture and acquisition in the Middle East. The company aims to raise an additional $1.15 million through a retail offer to support its growth ambitions.
- Institutional entitlement offer raises $1.38 million at $0.004 per CDI
- Retail entitlement offer to raise an additional $1.15 million
- Funds to support a 50, 50 joint venture valued over US$6 million in the Middle East
- Acquisition of an NOC-registered UAE entity underway
- Entitlement offer fully underwritten by Peloton Capital Pty Ltd
Capital Raise Completes Institutional Phase
SRJ Technologies Group Plc (ASX, SRJ) has successfully closed the institutional component of its accelerated non-renounceable entitlement offer, raising approximately $1.38 million. The offer was priced at $0.004 per new Chess Depositary Interest (CDI), matching the last traded price and reflecting strong backing from existing institutional and sophisticated investors. This phase was fully underwritten by Peloton Capital Pty Ltd, providing certainty to the capital raise.
Retail Offer to Follow
The company plans to raise an additional $1.15 million through a retail entitlement offer, which opens on 8 August 2025 and closes on 19 August 2025. Eligible retail shareholders in Australia and New Zealand will be invited to participate on the same terms as institutional investors. Notably, entitlements under this offer are non-renounceable and cannot be traded or transferred, emphasizing the importance for shareholders to actively participate to avoid dilution.
Strategic Growth Initiatives in the Middle East
Proceeds from the entitlement offer will partially fund SRJ’s entry into a 50, 50 joint venture with a National Oil Company (NOC)-registered entity, targeting a multi-year contract valued at over US$6 million in the Middle East. This partnership, announced earlier in August 2025, positions SRJ to expand its footprint in a region critical to the energy and asset integrity sectors. Additionally, funds will support the acquisition of an NOC-registered UAE entity, further cementing SRJ’s regional presence.
Market and Investor Confidence
CEO Kurt Reeves highlighted the strong institutional support as a clear endorsement of SRJ’s strategic direction. The capital raise is a foundational step in transforming SRJ into a leading regional and international asset integrity maintenance partner. The company’s advanced robotic and UAV inspection technologies, delivered through its ACE subsidiary, are well positioned to meet growing regulatory and operational demands in energy and maritime sectors.
Trading Resumption and Next Steps
SRJ’s CDIs are expected to recommence trading on the ASX from market open on 5 August 2025, following a voluntary suspension. Investors will be watching closely as the retail entitlement offer unfolds and as the company progresses with its joint venture and acquisition plans. The timetable for new CDI issuance and trading is clearly outlined, providing transparency for shareholders.
Bottom Line?
SRJ’s successful capital raise and strategic moves in the Middle East set a promising growth trajectory, but execution risks remain as the retail offer and integration unfold.
Questions in the middle?
- Will the retail entitlement offer achieve its $1.15 million target amid current market conditions?
- How will the joint venture and UAE acquisition impact SRJ’s revenue and profitability in the near term?
- What are the potential operational challenges in integrating the new UAE entity and managing the multi-year Middle East contract?