Pearl signs placement agreement for $5m

Tyre recycling company Pearl Global has signed a conditional placement agreement with cornerstone investor ROC Asset Management to fund the addition of thermal desorption units.

The $5 million share placement will also include ROC receiving a free attaching unlisted option to acquire one share in Pearl for every two shares it subscribes for.

The issue price for each share will be 12.7 cents, which is a 20.63 per cent discount on its previous closing price of 16 cents.

The attaching options will be exercisable at 24 cents each, expiring 12 months from the date of the share placement’s completion.

The placement’s completion is contingent on a number of factors, including Pearl finalising its acquisition of Australian Tyre Processors.

In a statement, the company said the funds would be used to acquire additional thermal desorption units, which is used to conduct an extreme heating process to cleanly separate tyre waste into its component parts.

Pearl chairman Gary Foster said the securing of the investment represented an opportunity for all stakeholders to benefit.

“We are now shifting focus from being a development technology company to a commercial business,” he said.

Shares in Pearl were down 6.25 per cent to trade at 15 cents each at 11am AEDT.