3rd Aug 2023 15:49
(Alliance News) - LifeSafe Holdings PLC on Thursday said it has raised gross proceeds of around GBP1.1 million through the placing and subscription of new shares.
The Essex, England-based fire safety technology business with fire extinguishing fluids and fire safety products said this was via the placing of 2.6 million shares and a further 378,378 subscription shares, both at a price of 37 pence per share.
Shares in LifeSafe were down 4.6% to 38.65p each in London on Thursday afternoon.
The company said part of the proceeds will be allocated towards stock procurement in the latter half of 2023, alongside bolstering general working capital.
LifeSafe said its allocation for stock procurements would help "enhance the company's ability to fulfil customer demand during the seasonally-stronger second half of the year", particularly for stock shipped to the US market.
LifeSafe noted 68% of company revenue was generated in 2022, which it said highlighted "the importance of adequate inventory to maintain product availability".
"One of the key advantages of advanced stock procurement facilitated by this fundraising effort is the ability to plan and execute the most cost efficient US distribution routes," said LifeSafe.
"By procuring stocks ahead of time, the company believes that it can streamline its supply chain management and refine delivery logistics which the company believes will give it a competitive edge in the market."
Earlier Thursday, LifeSafe said it intended to raise up to GBP940,000 via the placing, alongside GBP140,000 via subscription shares. It also expressed its intention to raises GBP250,000 via a retail offer to existing shareholders.
Looking ahead, LifeSafe said it intends to issue a further 936,900 shares to raise a further GBP350,000, which will be placed alongside shares as part of a retail offer.
By Greg Rosenvinge, Alliance News reporter
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