Plexus Holdings PLC on Monday said it has conditionally raised £6million from a discounted share placing to strengthen its balance sheet and continue to develop its product portfolio.

Plexus is an oil and gas engineering services company that owns the POS-GRIP technology developed by Founder and Chief Executive Ben van Bilderbeek, who Monday said the proceeds will allow the company to replicate its success in the UK North Sea elsewhere around the world.

The POS-GRIP jack-up drilling system allows companies to drill high-pressure, high-temperature wells on conventional assets, and Plexus also believes that the technology can save oil and gas companies money compared to alternative systems.

Plexus has previously claimed to have a virtual monopoly over the UK North Sea market with almost 100% market share, but the region has seen a decline in activity, particularly in exploration, as producers and explorers hunker down because of low oil prices.

A report from Hannon Westwood earlier this year suggested only six exploration wells were expected to be drilled in the area during 2016 – the lowest yearly figure since 1964 – prompting Plexus to move into other geographical regions.

On Monday, Plexus said the GBP6.0 million has been conditionally raised through the issue of over 9.2 million new shares priced at 65.0 pence each, which is a 3.3% discount to the company’s closing share price on Friday.

Plexus shares were trading up 1.3% to 68.09 pence per share on Monday morning.

The shares would represent around 10% of the company’s enlarged issued share capital and needs to be approved by shareholders at a meeting to be held on June 28.

“The placing is intended to strengthen Plexus’ balance sheet during the current down cycle and to provide Plexus with the flexibility to support the capital requirements of its long-term strategy of becoming a leading international oil and gas services company, supplying a new and superior standard of wellhead equipment and associated products for exploration, production and subsea applications,” the company said.

The proceeds will allow Plexus to diversify outside of the North Sea, and it has identified opportunities in Asia, Russia and in both North and South America.

Plexus is hoping the funds will allow the Python Subsea Wellhead development programme to be progressed towards a target trial this year and facilitate the ongoing development of the POS-GRIP product suite, including subsea and production applications, whilst continuing to research and develop other complementary products.

“At its core, Plexus is an intellectual property-driven oil and gas engineering services company. The funds raised today will ensure that we will be able to continue to invest in our proprietary technology and products during the current oil and gas down cycle, and at the same time support our new partners in overseas markets such as Russia,” said van Bilderbeek.

“Needless to say, we are keen to be in a position to hit the ground running once activity in the sector picks up; the funds raised today will help ensure that we will be there to play our role in servicing the needs of the industry with our superior method of engineering and where our jack-up rental wellhead inventory is ready to be deployed,” the chief executive added.