24th Aug 2021 11:36
(Correcting company description and share price and year-to-date change.)
City of London Group PLC - owns UK small-business lender Recognise Bank - Raises GBP11.4 million through share subscription and up to GBP6.9 million through an open offer, looking to establish a new UK SME bank, Recognise Bank Ltd. Capital raise is conditional on shareholder approval to grant directors authority to allot shares. In addition, City intends to issue 5.6 million new ordinary shares to trustees of its employee benefits trust to satisfy future employee share awards, representing 6.4% of current shares outstanding. Expects capital raise will lead to the removal of deposit restrictions and full authorisation of Recognise Bank by the Prudential Regulation Authority. Plans to complete sale of Milton Homes Ltd interest in coming days.
"This latest capital raise and expected sale of Milton Homes will enable us to realise our strategic ambitions for Recognise Bank, namely increasing the size of the loan book with access to funding from depositors through our business and personal saving products. This has been our goal for three years," says Chief Executive Michael Goldstein. "The latest fundraise demonstrates the support that we enjoy from shareholders for our ultimate strategic goal, to build the UK's leading SME bank, supporting the needs of local businesses."
Current stock price: 72.00 pence
Year-to-date change: down 15%
By Josie O'Brien; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
CIN.L