HighCom Raises A$7 Million at A$0.20 Per Share to Boost Sales and Manufacturing
HighCom Limited has announced a successful A$7 million placement alongside a new Share Purchase Plan, aiming to accelerate sales and manufacturing upgrades in key markets.
- A$7 million raised via placement of 35 million shares at A$0.20 each
- Directors to participate in placement pending shareholder approval
- Share Purchase Plan to raise up to A$1 million from existing shareholders
- Funds earmarked for sales growth, manufacturing upgrades, and product development
- Placement structured in two tranches, second tranche requires shareholder approval
Capital Raise Overview
HighCom Limited (ASX, HCL), a leader in advanced personal protection and security technology, has announced a capital raise designed to underpin its growth ambitions for the second half of fiscal 2026. The company secured firm commitments to raise approximately A$7 million through a placement of around 35 million new shares priced at A$0.20 each. This price reflects a discount to recent trading prices, a common feature in capital raises aimed at attracting strong investor demand.
The placement will be executed in two tranches, the first tranche, raising about A$5.1 million, will utilise the company’s existing placement capacity under ASX Listing Rules, while the second tranche, expected to raise around A$1.9 million, is subject to shareholder approval. Notably, company directors have committed to participate in the placement, pending shareholder consent, signalling confidence in the company’s prospects.
Share Purchase Plan to Engage Existing Shareholders
In addition to the placement, HighCom is launching a Share Purchase Plan (SPP) offering eligible shareholders the opportunity to invest up to A$30,000 each at the same price as the placement shares. The SPP aims to raise up to A$1 million, though it is non-underwritten, meaning the final amount raised could vary. This approach allows existing shareholders in Australia and New Zealand to increase their holdings without brokerage fees, fostering shareholder engagement and loyalty.
Strategic Use of Funds
The proceeds from both the placement and the SPP will be directed towards accelerating sales growth in key markets, upgrading manufacturing capabilities, and advancing product development. HighCom’s Executive Chairman and CEO, Geoff Knox, emphasised the company’s commitment to capitalising on growing demand for its market-leading ballistic protection products, which serve military, law enforcement, and border security sectors. Investments in new tooling and facility enhancements are expected to support sustained growth objectives and maintain HighCom’s competitive edge.
Market Context and Next Steps
The placement price represents a discount ranging from 11% to 26% compared to recent trading averages, a strategic move to ensure strong uptake. The first tranche of shares is expected to settle and be allotted by mid-February, with the second tranche and SPP following in the coming months, subject to shareholder approvals and subscription levels. Investors will be watching closely for the outcomes of these approvals and the company’s subsequent execution of its growth plans.
HighCom’s dual focus on personal protection armour and advanced technology integration positions it well within the defence and security sectors, where innovation and reliability are paramount. This capital raise could mark a pivotal moment in scaling operations and reinforcing its product leadership.
Bottom Line?
HighCom’s capital raise sets the stage for accelerated growth, but shareholder approval and SPP uptake will be critical to watch.
Questions in the middle?
- Will shareholder approval be secured smoothly for the second tranche and director participation?
- How will HighCom balance manufacturing upgrades with maintaining product quality and delivery timelines?
- What impact will the capital raise have on HighCom’s competitive positioning in the defence sector?
