De.mem Limited (ASX: $DEM) Placement Close Highlights

De.mem Limited (ASX: $DEM) has successfully closed an oversubscribed placement, raising $2.1m at 10 cents per share to fund the acquisition of Auswater Systems Pty Ltd. The acquisition aims to enhance De.mem's portfolio with a high-margin, specialty services provider catering to over 50 high-quality mining clients in Western Australia.

Executive Commentary on Placement and Acquisition

De.mem Chief Executive Officer Andreas Kroell expressed excitement about the potential of the combined De.mem-Auswater businesses, highlighting the leading position in the strategic Western Australian mining region. He welcomed new investors and thanked existing ones for their support. Auswater Founder and CEO Mr. Jaafar Roz expressed delight in joining the De.mem Group, emphasizing the substantial growth opportunity and the potential to enhance customer service proposition.

Summary of De.mem's Placement and Acquisition Strategy

De.mem (ASX: $DEM) has successfully completed an oversubscribed placement, securing $2.1m to finance the acquisition of Auswater Systems Pty Ltd. The acquisition aligns with De.mem's strategy of consolidating the decentralized industrial water treatment segment, aiming to grow acquired businesses' revenues through cross-selling high-margin recurring products and services. The acquisition of Auswater is expected to accelerate De.mem's path to operating cashflow positive and provide synergies, margin accretion, and accelerated growth in the strategic Western Australian mining region. The company's successful execution of its consolidation strategy is evidenced by the 63% revenue growth across its 4 acquisitions since 2019. De.mem's outlook includes further organic growth, entry into the US domestic water filtration market, and expansion into new geographies and/or introduction of new products in existing markets.