Sealegs raises $1.3 million in share issue to Jersey investor

Jersey-based investor Pirlinton Holdings has injected $1.3 million into Sealegs Corp, which makes amphibious boats, via a share issue which will be used for development and working capital requirements.

Pirlinton bought 8.5 million shares at 15 cents apiece yesterday, to take the investor's stake to 14.7 million shares, or 11 percent of the company, according to notices lodged with the NZX. Shares of Sealegs last traded at 12 cents, and have declined 40 percent over the past 12 months.

Last month, the amphibious boat maker turned a first-half profit of $32,300, or 0.05 cents per share, in the six months ended Sept. 30, turning around a loss of $604,000, or 0.51 cents, after strong local demand underpinned a pick-up in sales, and as it taps new markets in South America. Revenue rose 15 percent to $9.67 million, with 59 boats invoiced in the period compared to 54 a year earlier.

In August, the boat-maker entered into a joint venture to build its amphibious craft to supply the wider South American market, licensing a Brazilian manufacturer to build vessels using amphibious technology kits supplied out of New Zealand.

Sealegs posted a positive operating cashflow in the period, generating an inflow of $438,300 in the six-month period compared to an outflow of $1.21 million a year earlier. That left the firm with cash and equivalents of $462,300 at the Sept. 30 balance date, including $300,000 raised from a share issue, and $1.19 million spent on development costs.

Pirlinton's investment was managed by Stone Hage Trust Holdings, an international adviser to "international ultra-high-net-worth families", according to its website.

(BusinessDesk)

Suze Metherell
Tue, 04 Nov 2014

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Sealegs raises $1.3 million in share issue to Jersey investor