23rd Sep 2014 08:01
LONDON (Alliance News) - CA Sperati PLC shares fell heavily in early trade on Tuesday after the buttons and bows maker said it raised money through a discounted share subscription, said it would exit its apparel business, and added it has entered into a deal to subscribe to shares in Kentucky Oil & Gas PLC.
The company's shares were down 27% to 3.00 pence in early trade, making it one of the five worst performers on the AIM All-Share.
The group said it had raised GBP400,000 via an oversubscribed share subscription at 3 pence per share, a discount to the 3.875 pence closing price on Monday.
The company said it has been considering options to expand its apparel business via acquisitions or organically, but has concluded the best course of action for shareholders would be to sell the business or redeploy the capital in the unit by means of investing in other areas.
That strategic shift has led the company to focus on the oil and gas and general resources sector and it said it has entered into a non-binding heads of agreement to subscribe to 3.3 million shares in Kentucky Oil & Gas at 4.5 pence per share. The deal would give CA Sperati a 4% stake in the enlarged share capital of Kentucky.
The group said that subject to approval of its change in investment strategy and the disposal or realisation of its existing apparel business, the investment in Kentucky would be made via a cash investment of GBP150,000.
By Sam Unsted; [email protected]; @SamUAtAlliance
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