OTAQ Plc Announces Trading Update and Proposed Fundraising

OTAQ Plc, a technology company focused on the aquaculture and offshore markets, has announced a proposal to raise up to £2.0 million through the placement of convertible loan notes. These loan notes will have a three-year term with a 10% annual cash coupon and are set to be convertible into ordinary shares at 3.0 pence each. The fundraising is contingent on shareholder approval at an upcoming general meeting.

In a recent trading update, OTAQ also revealed that its performance for FY 2023 slightly exceeded management's expectations, with revenues reaching at least £4.4 million. The EBITDA loss for the year was reported at approximately £311k, a slight improvement over the previous year. Additionally, the company has experienced a 19% revenue increase in the first quarter of FY 2024 compared to the same period last year.

OTAQ highlighted developments in its Aquaculture division, particularly the launch of its Live Plankton Analysis System (LPAS) at the Aquaculture UK conference. This new system follows four years of development and successful trials. The company anticipates that the net proceeds from the placement will be used for product development, repayment of existing debts, and general working capital purposes.