15th Jan 2016 08:01
LONDON (Alliance News) - The Hotel Corp PLC on Friday revealed plans to raise up to GBP2.5 million through a placing and open offer, amid a broader capital reorganisation, in a move designed to fund the acquisition of investment properties under its investing policy.
The move, which will raise a minimum of GBP2.0 million for the company, comes after shareholders in September 2015 approved a new strategy of acquiring and holding freehold properties in specialised parts of the property market.
Initially, the company will invest in purpose-built homes for adults with learning difficulties requiring support from carers, care homes for the elderly, and converted dwellings for young people requiring extensive support from social services.
The money will add to the GBP300,000 in cash already held on the company's balance sheet.
Hotel Corp said it has placed already 10.0 million new shares with investors at the 20 pence issue price, because the overall offer is much bigger than its market capitalisation, enabling it to secure the GBP2.0 minimum.
"To the extent that the open offer is subscribed by qualifying shareholders by amounts in excess of the difference between the open offer amount (GBP2.5 million) and the placing (GBP2.0 million) the placing will be reduced accordingly. In the event that the open offer is subscribed in full, there will be no new ordinary shares available for the placing," Hotel Corp said.
In addition, on admission to trading of the new shares, shareholders will also receive one warrant for every three new shares subscribed by them under the fundraising. The warrants will give shareholders the ability to subscribe for new shares in the future at the closing mid-market price of the shares on the last dealing day before admission to trading. The warrants will be unlisted and will not be admitted to trading on AIM.
Qualifying shareholders may subscribe for open offer shares on the basis of five open offer shares for every 20 existing shares held.
The broader capital reorganisation involves a consolidation and subdivision of the company's shares.
By Samuel Agini; [email protected]; @samuelagini
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