22nd Jul 2022 17:59
(Clarifying the description of the company.)
(Alliance News) - Shares in Unbound Group PLC plummeted on Friday as it said that it has raised around GBP3.3 million through a placing and subscription of 20.8 million new shares at a discount to its current share price.
Unbound is a London-based parent company for a group selling a range of brands focused on the 55 plus demographic. Its shares closed down 42% to 12.27 pence each in London on Friday.
On Thursday, the company proposed a placing of 20.8 million new shares at 15p each, as well as a subscription for 1.2 million shares at the same price, to raise GBP3.3 million in total. Unbound will launch an open offer of up to 6.7 million shares to raise up to a further GBP1.0 million.
The issue price reflects a 32% discount to the closing market price of 22.20p per share on Wednesday, being the last day before the announcement.
Unbound said it will use the proceeds drive its digital connection with its target customer base and invest in technology to improve the customer experience, deliver cost efficiencies and facilitate "accelerated scalable growth". It also plans to increase inventory effectiveness by utilising European suppliers with shorter lead times.
On Friday, Unbound said it has closed the accelerated bookbuild for the fundraise and "successfully" raised around GBP3.3 million through a placing and subscription of 20.8 million shares.
The company said that this includes participation from directors, who subscribed for 583,334 placing shares. In addition to the placing, some directors and members of its senior management team have subscribed for 1.2 million subscription shares to raise a further GBP183,192 for the company.
Notably, Non-Executive Chair Neil Johnson bought 333,334 shares, worth GBP50,000, and Non-Executive Director Gavin Manson bought 416,667 shares, worth GBP62,500. Johnson now holds 612,391 shares in the company, a 0.9% stake, whilst Manson is interested in 967,963 shares, a 1.4% stake.
The placing shares and the subscription shares together represent around 52% of the company's existing issued share capital.
By Sophie Rose; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
UBG.L