ISOTeam plans to raise some $10 million to fund the wider deployment of drones. The company plans to place out 86.2 million new shares at 8.1 cents each, raising $7 million.
It will also raise another $3 million by issuing a convertible bond of 32.9 million conversion shares that can be converted at 9.1 cents.
SAC Capital is helping with the share placement while SooChow Singapore Capital Markets (Asia) deals with the convertible bonds.
Maybank Securities is the sub-placement agent for both placements.
ISOTeam made its first foray into drone technology in 2021 through a collaboration with a technology partner that led to the use of AI-enabled drones for façade inspection works.
In the same year, it signed a memorandum of understanding with Nippon Paint (Singapore), which is a shareholder, to collaborate on the development of AI-driven, autonomous façade washing and painting drones.
According to ISOTeam, after 2.5 years of R&D, it is now in the final stage of approval processes and commercial trials for its façade painting and washing drones.
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Proceeds from this fund-raising will help set up a "full-fledged drone workforce".
“What started as a project to resolve manpower supply issues during the Covid-19 pandemic is finally coming to fruition," says executive director and CEO Anthony Koh.
"The drones can work quickly and tirelessly with greater accuracy. This will reduce our reliance on foreign workers and result in time and manpower cost savings as well as enhanced work-site safety."
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Besides deploying the drones for use in its own projects, ISOTeam may potentially lease them to industry peers or help them develop their own drones that can serve their specific needs.
After setting aside 60% of the proceeds for drones, the remainder will be used for general working capital needs, which will include corporate
expenses, hiring of drone pilots, software engineers and other related talent.
