11th Jun 2020 13:01
(Alliance News) - Angling Direct PLC on Thursday said it raised GBP5.5 million to secure the fishing equipment retailer "further protection" from Covid-19 uncertainty.
The Essex-based firm placed 11.0 million shares at 50.0 pence each, a 15% discount to its Wednesday closing price. On Thursday afternoon, Angling Direct was down 14% at 50.80p.
Angling Direct said: "The net proceeds of the placing will strengthen the group's balance sheet to provide further protection against the uncertainty created by Covid-19 and provide additional funding for prompt payment of suppliers to secure product, given the high level of customer demand anticipated over the coming weeks as lock-down restrictions are eased and retail stores re-open from June 15."
The company's stores were forced to close in March, after UK government measures forced non-essential retailers to shutter due to Covid-19 lockdowns. However, relaxed lockdown measures in May meant fishing was allowed.
Chief Executive Andy Torrance added: "We are delighted with the strong support received from our existing shareholders and welcome new investors onto the register. Whilst Covid-19 has presented many uncertainties, Angling Direct has demonstrated its resilience as a business with its e-commerce operations continuing to outperform to cater to the increased demand from our loyal customers."
By Eric Cunha; [email protected]
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