19th Feb 2016 08:21
LONDON (Alliance News) - APC Technology Group PLC on Friday said it has raised GBP1.3 million by selling new shares, in a move to "take advantage of additional procurement opportunities" to reduce costs and increase margins.
APC, which distributes electronic components and provides energy efficiency products, said it is placing just shy of 18.0 million shares, and selling another 3.0 million shares through a subscription to raise the funds.
The shares will be sold at 6.0 pence per share, a 26% discount to the closing mid-market price of 8.125 pence on Thursday. The stock was down 16% at 6.80p on Friday early morning.
The company said the money should ensure its balance sheet can support growth, following the extension of the scope of an existing contract with Royal Mail PLC in January, and the award of a contract by the NHS Sustainable Development Unit.
Richard Hodgson, who agreed to subscribe for 1.3 million subscription shares in a move that will give him a total of 1.5 million shares and a 1.2% stake overall, thanked shareholders for their support and welcomed the company's new investors.
"This raise will strengthen our balance sheet and allow us to take advantage of the growth in our order book and the opportunities that we see across the business," Hodgson said.
APC said that all of its business units have continued to see "exciting and attainable" opportunities to grow. Orders within its Component Distribution business amounted to GBP3.5 million, with contract wins of GBP1.5 million in Minimise Water and GBP1 million in Minimise Energy, in the first quarter of its current financial year.
"The sales pipeline opportunities currently being reviewed total GBP37.3 million in Minimise Energy and GBP12.7 million in Minimise Water. The board remains focused, therefore, on meeting market expectations with a focused strategy and settled management team in place," the company said.
"The placing will help the company to ensure that its balance sheet is capable of adequately supporting APC's growth profile. Follow-on and new customer orders are coming through the sales pipeline as a renewed focus on cross-selling opens additional opportunities, and the placing and subscription (together with the company's reconfirmed invoice discounting facilities, the potential extension of which is under discussion) provides sufficient funds for expansion and fulfilment of APC's growing order book," APC added.
Cantor Fitzgerald Europe, the company's nominated adviser and broker, is handling the placing.
By Samuel Agini; [email protected]; @samuelagini
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