Cardno Ltd said Monday that it is set to raise $49 million through capital raising, which the company intends to use on planned acquisitions of two leading US environmental consultancy group and balance sheet strengthening.

The company said that it is set to conduct a one-for-six renounceable rights issue valued at $3.25 per share, which is 75 cents less from the company's last traded prices of $4 prior to entering trading halt last week. It added that the offer price also reflected a 19 percent discount to the $4 closing price last seen on June 30 and a 16.5 per cent discount to the Theoretical Ex-Rights Price at $3.89.

Cardno chairman John Massey said that it is buying ENTRIX Holdings Company and Environmental Solutions and the purchase should provide more "diversity of professional services for the business and strengthened Cardno's base in a growing US market."

Mr Massey expressed confidence that the acquisitions would deliver earnings per share accretive in both FY2010 and FY2011 as he revealed that the company's board is looking forward for a much improved conditions and regain organic growth following the announced profit guidance of between $34 million to $36 million for the year ending June 30 2010.

He said that the acquisitions should be able to fuel a much stronger growth in FY2011 while the planned rights issue should afford Cardno "the financial flexibility to fund organic growth and to pursue an acquisition strategy globally."

Cardno stocks came out of the trading halt just before the market opening on Monday and as of 1350 AEST, company shares were trading at $3.90, losing 10 cents or 2.5 percent.