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Seeing gains after recapitalisation

Seeing Machines’ (AIM: SEE) big recapitalisation, announced last week, saw the computer vision technology firm’s share price buckle under the weight of new shares being issued to raise £35 million (US$47 million). But it has kicked back, gaining 4.4% yesterday to get the stock to the 5.9p (US8c) threshold.
Seeing gains after recapitalisation Seeing gains after recapitalisation Seeing gains after recapitalisation Seeing gains after recapitalisation Seeing gains after recapitalisation

Technology company has sights on significant sales growth this year and next

Staff reporter

SEE, which has a pivotal agreement with mining machinery giant Caterpillar on delivery of its fatigue management offering to the global mining market, placed a whopping 700 million new 5p shares to raise vital capital and spread its institutional investor base.

finnCap, Canaccord Genuity and Cenkos Securities were joint bookrunners on the placement.

SEE CEO Mike McAuliffe, who took the role in May this year, said oversubscriptions took the raising from £30 million to £35 million.

"We … welcome many new institutional investors as shareholders in the company," he said.

"The proceeds … [enable] the business to continue to invest into its Vision AI platform and product development as well as scaling the company's infrastructure and global footprint to meet sustained customer demand for fleet business expansion and for our leading edge Automotive DMS solutions."

In a London presentation last week McAuliffe said the company had secured A$36.5 million of new contracts in FY17 and grew actual revenue for the year to A$13.6 million. But that is projected to rise to $38-43 million in FY18 and, potentially, $78-88 million in FY19.

"Based on performance to date, a strong pipeline and new product launches - while acknowledging lower resource investments than previously planned - the sompany forecasts to deliver triple the revenue of FY17 [in FY18]," McAuliffe said.