Highlights

  • Proposed Placement of up to approximately A$2.57 million at A$0.009 per CDI, utilising ASX Listing Rules 7.1 and 7.1A Placement capacity.
  • Funds to support execution of secured contracts and expansion of advanced robotics-based inspection operations in the Middle East energy sector.
  • CDIs expected to recommence trading on 5 May 2026 following announcement of Placement results; allotment scheduled for 13 May 2026.

SRJ Technologies Group (ASX:SRJ) shares last traded at AUD 0.010 on 30 April 2026. Trading in SRJ CDIs was suspended in connection with the Placement announced on 1 May 2026, consistent with standard ASX practice during Equity raising processes. CDIs are expected to recommence trading on 5 May 2026, following the announcement of Placement results. The pricing of the Placement at AUD 0.009 per CDI — a discount to the last traded price of AUD 0.010 — is typical for small-cap Capital raises where a modest price concession is necessary to attract institutional and sophisticated investor participation under time pressure. At the nano-cap end of the ASX, the ability to complete a Placement at all represents a meaningful de-risking of execution risk on secured contracts.

The Placement: Structure and Rationale

SRJ Technologies is proposing to raise up to approximately A$2.57 million through the issue of up to approximately 285.6 million new CHESS Depositary Interests (CDIs) at an issue price of A$0.009 per CDI. The Placement will utilise SRJ's available capacity under ASX Listing Rules 7.1 and 7.1A, which permit issuances of up to 15% and a further 10% of existing share Capital respectively without Shareholder approval. Peloton Capital and AE Advisors Group are acting as joint lead managers and bookrunners; Maddocks is providing legal counsel.

The stated purpose of the Capital raising is to fund the execution of secured contracts in the Middle East energy sector, including the deployment of robotics platforms, vehicles and personnel (pilots). The funds are also intended to cover the working Capital requirements associated with asset integrity contract execution — specifically, performance guarantees, supplier mobilisation costs and project delivery costs. The proceeds will also partially offset Placement Transaction Costs.

What SRJ Technologies Does

SRJ Technologies is an integrated asset integrity maintenance, engineering and technology-enabled services company serving the energy, industrial and maritime sectors. Asset integrity maintenance involves providing site-based maintenance, advanced inspection, predictive monitoring and repair services designed to prevent asset failures and extend the operating life of critical infrastructure. The company's services focus on the integrity of mechanical and pressure containment systems — the pipelines, vessels, flanges, seals and associated equipment that keep energy facilities operating safely and in regulatory compliance.

The company's robotics Subsidiary, ACE, is a key differentiator. ACE provides remote inspection services using advanced robotic systems capable of inspecting Assets that are inaccessible or too hazardous for human entry — structures such as the interior surfaces of pressurised vessels, ballast tanks, and offshore marine Assets. ACE has achieved accreditation with all major Marine Class Societies, which represents a significant technical and commercial achievement in a highly regulated industry. The ability to inspect previously uninspectable Assets is not merely a technical novelty; it directly enables operators to extend asset life and avoid costly shutdowns, which are measurable economic benefits.

Middle East Growth Strategy

SRJ has articulated a phased growth strategy aimed at establishing a leading regional asset integrity services platform focused on the Middle East market. The region represents one of the most significant concentrations of energy infrastructure globally, with the hydrocarbon Assets of Saudi Arabia, the UAE, Qatar, Kuwait and Oman representing trillions of dollars of Capital investment requiring ongoing maintenance, inspection and integrity assurance services. The regulatory and safety standards applied to these Assets — particularly for offshore and export-critical facilities — are increasingly aligned with international best practice, driving Demand for advanced inspection methodologies including robotics.

The company has disclosed that significant contracts have already been awarded across both its Asset Integrity Maintenance and Advanced Inspection Services divisions in the Middle East. The purpose of the Placement is therefore not speculative — it is operational working Capital to execute contracts that are already in hand, not to fund a prospective pipeline. For investors in small resource service companies, this distinction between contracted and prospective Revenue is material: the Placement is funding execution risk, not pipeline risk.

Placement Timeline and CDI Trading Implications

The indicative timetable for the Placement is as follows. The prospectus was lodged with ASIC on 1 May 2026. Placement results are expected to be announced on 5 May 2026, at which point CDI trading will recommence. Settlement of new CDIs is scheduled for 12 May 2026, with allotment and commencement of trading in new CDIs on 13 May 2026. Investors should note that the timetable is indicative and SRJ reserves the right to amend dates subject to applicable regulatory requirements. The relatively tight timeline — from announcement to trading of new CDIs in approximately 12 days — is consistent with the operational urgency of funding contract execution.

Balance Sheet Context and Use of Proceeds

SRJ Technologies is at an early stage of Revenue growth and the $2.57 million Placement is designed to bridge the company through a critical operational phase. The contract performance guarantees and supplier mobilisation costs referenced in the Placement documents represent upfront cash outflows that precede Revenue recognition, creating a timing mismatch typical of project-based service businesses. Securing adequate working Capital at the contract commencement stage is essential to avoiding operational disruption or Force Majeure events that could damage commercial relationships in a market — the Middle East — where reputation and delivery track record are critical competitive advantages.