Advantage shares for placement and payment

The company says it has reached agreement Tuesday to issue 4.5 million shares to third parties at a price of 37c each.

"This price is a 7% premium over the average end of day price in the calendar month immediately preceding the agreement. The proceeds from this placement will be used to fund working capital requirements for an offshore contract," Advantage says.

On top of this the company has reached agreement with both the Aldridge Punter business and the vendors of Advantage Portable Technology to issue shares for the balance of deferred settlement positions.

Under the agreements Advantage will issue 4.33 million shares to interests associated with Murray Aldridge and 3.78 million shares to David Punter.

"The total value of the consideration is $3 million, being a discount of $ 300,000 for early settlement," Advantage says.

The conditional agreement with the vendors of Advantage Portable Technology is 2.16 million shares, which is equivalent to $ 800,000 calculated on the volume weighted average price for the five trading days immediately preceding the agreement.

Advantage says the share issues are subject to shareholder approval at its AGM on Friday.

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