UPDATE 2pm: Mobilarm chief executive Ken Gaunt has agreed to stump-up $1 million to help set up a joint venture company in Nigeria.
The money will be used to set up a marine safety equipment rental service, mainly serving the African nation's offshore oil and gas sector.
Mr Gaunt, who also sits on Mobilarm's board, said the company had a great opportunity in Nigeria to set up an equipment rental program that could be replicated worldwide.
He said the business would offer its marine safety products for outright purchase, long-term rental, or pay per usage.
"Not only does this secure long term revenue streams for our company but it builds our presence in the Nigerian oil and gas sector, providing a great platform for further growth," Mr Gaunt said.
"Setting up this rental program requires a short-term cash injection that should repay itself from ongoing rental revenue streams."
Mr Gaunt said he had decided to provide the loan so the company could execute its strategy without any dilution to existing shareholders.
The company also announced today the appointment of former senior Royal Navy officer, Vice Admiral Sir Tim McClement, as chairman, replacing David Marshall, who is retiring.
Mobilarm's chief financial officer Jorge Nigaglioni will also join the board.
Last year Mr Gaunt cut jobs and moved most of Mobilarm's operations from Perth to the United Kingdom.
The company recorded a $1.5 million loss in the past financial year.Mobilarm shares closed up 0.1 cents, or 1.41 per cent, at 7.2 cents.
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