25th Nov 2024 12:52
(Alliance News) - boohoo Group PLC on Monday said it has received lender consent for its recent GBP39.3 million equity fundraising.
The Manchester, England-based online fashion retailer said the fundraise remains conditional only on the placing agreement not having been terminated and becoming unconditional, and admission.
It is expected that the close to 127 million new shares will commence trading on November 26.
The first round of fundraising, through a share pricing and subscription, was oversubscribed earlier in November. The later retail share offer attracted less support than hoped, raising GBP400,000 and missing the GBP6.0 million target.
boohoo plans to use the proceeds to reduce debt and bolster its balance sheet as it fends off pressure from its largest shareholder Frasers Group PLC to install their own founder, Mike Ashley, as chief executive.
Chief Executive Officer Dan Finley said: "Concluding the fundraising process and securing support from the banking syndicate is further evidence of the decisive steps that we have taken since announcing the business review. I now look forward to driving the business review forward and maximising value for all shareholders and the completion of this process gives us a great platform to do so."
New Chair Tim Morris said: "I'd like to take this opportunity to thank our banking syndicate for their continued support. As a result of their backing, we now have a strong foundation from which to unlock and maximise shareholder value for all shareholders."
Shares in boohoo were down 0.9% to 30.35 pence in London on Monday afternoon.
By Michael Hennessey, Alliance News reporter
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