Orcoda (ASX:ODA) secures $1.3M Pacific Energy project

  • Orcoda (ODA), through its subsidiary Betta Power, has entered a sub-contract agreement with a client of Pacific Energy Groups
  • The deal will see Orcoda deliver materials, installation and labour to a major gold producer
  • The project is expected to raise $1.3 million, with $700,000 in purchase orders for materials already received
  • Meanwhile, ODA has raised $1.28 million through the issue of new shares at 17 cents each to institutional and sophisticated clients
  • Orcoda shares are in the grey, trading at 19 cents

 

Orcoda (ODA), through its wholly owned subsidiary Betta Power, has entered a subcontract agreement with Pacific Energy Group.

Under the agreement, the transport logistics and services optimiser will deliver materials, installation and labour for works on high voltage power lines to one of Pacific Energy’s clients for a project at a major gold mine.

The profit-share arrangement will see Betta Power receive 90 per cent of project profits with Pacific Energy to receive 10 per cent.

Over time, the project is expected to generate revenue in the vicinity of $1.3 million, with $700,000 received in purchase orders for materials so far.

Orcoda’s Managing Director Geoff Jamieson said the Betta Power acquisition is already adding value to the company.

“The board is pleased that the Betta Group was able to negotiate this project with Pacific Energy as quickly as it has,” Geoff said.

“I feel this speaks to the strength of the acquisition, the synergies, positive working relationships arising from Orcoda’s increased capability and broadening commercial network,” he added.

Additionally, Orcoda is set to raise $1.28 million through the issue of shares to institutional and sophisticated investors at 17 cents per share.

Under the placement, just over 7.5 million new shares will be issued to subscribers by March 15.

Orcoda is in the grey on Tuesday, trading at 19 cents per share at 4:55 pm AEDT.

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