- Metatek-Group (TSX:MTEK), a UK-based geophysical services provider, completed its initial public offering, raising C$35 million
- The company specializes in high-definition subsurface mapping of natural resources, including critical minerals, energy (including hydrocarbons), helium and hydrogen
- Metatek stock is down by 2 per cent trading at C$4.90 as of 10:09 am ET
Metatek-Group (TSX:MTEK), a UK-based geophysical services provider, completed its initial public offering, raising C$35 million through the issuance of 7 million shares priced at C$5 each. A secondary 1-million-share offering added an additional C$5 million to the company’s coffers.
Metatek, founded in 2012, specializes in high-definition subsurface mapping of natural resources, including critical minerals, energy (including hydrocarbons), helium and hydrogen, differentiating itself from invasive, slow-moving legacy providers by emphasizing rapid data acquisition, processing and scientific interpretation across air, land and sea. This approach, according to the company’s official website, has afforded it predictable revenue and a growing backlog justified by a strong adjusted EBITDA margin.
The proceeds will allow Metatek to repay all amounts outstanding under a credit facility, make near-term milestone payments towards the purchase of two new eFTG systems and fund the refurbishment of an existing iFTG system, all while shoring up working capital.
“This IPO comes at a timely moment, as the growing global focus on energy security, critical minerals and supply chain resilience is driving increased demand for our solutions,” Mark Davies, chief executive officer of Metatek, who owns 17.3 per cent of outstanding shares, said in Wednesday’s news release. “With this capital, we are well-positioned to accelerate our next phase of growth as we expand our global airborne geoscience capabilities and advance a strong pipeline of developments.”
The over-allotment option on the offering stands at up to 1.2 million shares for up to C$6 million in additional proceeds, which will go to a select numbers of selling shareholders, including PillarFour Capital Fund II LP and PillarFour Capital Parallel Fund II LP.
The offering was made through a syndicate of underwriters led by Canaccord Genuity, including CIBC Capital Markets, Scotiabank, ATB Capital Markets, Roth Canada, Beacon Securities and Research Capital Corporation.
Metatek-Group stock (TSX:MTEK) is down by 2 per cent trading at C$4.90 as of 10:09 am ET.
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