Sealegs details rights issue plans

Amphibious boat maker Sealegs today further outlined plans for a rights issue.

Sealegs told the stock exchange it is considering a three for one rights rennounceable rights issue of ordinary shares to existing shareholders.

The money raised would be used to fund the company's global expansion and to increase production capacity by moving to larger manufacturing facilities.

Managing director David McKee-Wright said the money would also be invested in research and development and in protection of its intellectual property.

The new shares offered would be priced at 15c each. Sealegs said the rights issue was expected to be underwritten and if fully subscribed would raise $2.12 million. It expects to register a prospectus and investment statement on May 27.

Sealegs makes boats that can be driven in and out of the water, eliminating the need for a trailer or towing vehicle. Its shares were down 7c to 20c in early afternoon trade today. They have ranged between 20c and 44c over the last 12 months.

- NZPA