8th Apr 2020 11:34
(Alliance News) - MJ Gleeson PLC on Wednesday said it will raise GBP16.4 million through an equity issue to quickly resume construction work once the resumption of building work is permitted by the UK government.
The housebuilder, which paused construction across its sites in March due to government restrictions, intends to issue up to 2.7 million new ordinary shares at 600 pence per share via an accelerated bookbuild process.
Shares in the company were up 6.1% at 615.58 pence each in London on Wednesday morning.
Certain directors of the company including Chief Executive Officer James Thomson, Chief Financial Officer Stefan Allanson and Non-Executive Director Fiona Goldsmith are intending to subscribe for 8,333, 8,333 and 5,000 shares respectively in the placing.
Proceeds from the equity issue will be used by MJ Gleeson to accelerate construction work on existing sites and opening of new sites. Funds will also be used ensure sub-contractors and key trades are ready to re-commence building.
Post the placing, the company will have cash on hand of GBP82.9 million.
By Tapan Panchal; [email protected]
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