2nd Jun 2020 10:07
(Alliance News) - Circassia Group PLC said Tuesday it has entered into an equity finance facility with two major shareholders, North Atlantic Small Cos Investment Trust PLC and Richard Griffiths, to provide the company with access to additional liquidity, if required.
Under the facility's terms, the trust and Griffiths are committed to subscribe for up to a total of GBP5 million in new shares if a request is made by Circassia up until the end of November.
The price at which new share may be subscribed for the lower of 24.6 pence, and the price at which Circassia may issue any other shares for cash during the facility period.
Both shareholders have agreed to subscribe for new shares in the ratio of 70:30 meaning that North Atlantic Smaller Cos could be required to subscribe for up to GBP3.5 million and Richard Griffiths for up to GBP1.5 million.
"The Covid-19 pandemic has continued to impact the Niox business, both in terms of lower revenues and higher cash burn, however, in recent weeks sales figures do suggest a gradual improvement as lockdown restrictions are lifted in different geographical markets in which we operate. The timing and extent of this recovery remains, predictably, uncertain at the current time and accordingly, the board believes that it is prudent to ensure the company has access to additional liquidity should it be required in the coming months," said Executive Chair Ian Johnson.
Shares in Circassia Group were down 3.5% at 24.14 pence on Tuesday in London. North Atlantic Smaller shares were 2.8% higher at 2,827.00p.
By Dayo Laniyan; [email protected]
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