Can HighCom Limiteds AU$7.0 Million Placement Drive Sales and Production Growth?

Source: Kapitales Research

Highlights

• HighCom Limited (ASX: HCL) has secured binding commitments for a placement to raise approximately AU$7.0 million before costs, issuing approximately 35 million shares at AU$0.20 per share.
• The capital raising is structured across two stages, with the initial tranche generating approximately AU$5.1 million.
• Directors have subscribed to participate in the placement, subject to shareholder approval.
• The funds raised will support sales growth in key markets, with a focus on product manufacturing and expansion.

Strong Investor Demand Drives Placement

HighCom Limited (ASX: HCL) has announced a successful placement to raise AU$7.0 million, driven by strong demand from sophisticated and professional investors. The placement involves the issue of approximately 35 million new shares, priced at AU$0.20 each. This marks a significant step in the company’s strategy to capitalize on the growing demand for its advanced protective wear technology, including products for military, law enforcement, and security sectors.

According to Executive Chairman and CEO Geoff Knox, the placement's success reflects investor confidence in HighCom's market-leading technology, which provides high-performance ballistic protection. The capital raised will enable the company to support its growth trajectory as it moves into the second half of FY26.

Placement Details and Director Participation

The placement will occur in two tranches:

• Tranche 1 will consist of 25,670,667 shares, raising approximately AU$5.1 million, and will be issued under the company’s existing ASX Listing Rule 7.1 and 7.1A capacity.
• Tranche 2 will involve 9,329,333 shares, raising AU$1.9 million, and will require shareholder approval at the upcoming general meeting.

The placement shares represent a discount of 11.1% to HighCom’s last closing price of AU$0.225 as of 6 February 2026. The participation of directors in the placement underscores their commitment to the company’s long-term success and strategic direction.

Share Purchase Plan to Raise Additional Capital

In addition to the placement, HighCom is offering a Share Purchase Plan (SPP) to eligible shareholders, with the aim of raising up to AU$1 million. Under the Share Purchase Plan, eligible shareholders can apply for up to AU$30,000 in new shares at the placement price, with the offer open from 17 February 2026 to 3 March 2026 and no brokerage costs applied.

The proceeds from both the placement and SPP will be used to increase production capacity, upgrade manufacturing facilities, and continue product development efforts, thereby strengthening HighCom’s position in the market.

Outlook

With the successful placement and the upcoming SPP, HighCom is well-positioned to accelerate its growth plans, particularly in the key areas of sales and product manufacturing. The company will focus on increasing its production capabilities to meet the growing demand for its world-class protective products, aimed at the defense, law enforcement, and security industries.

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