16th Nov 2015 16:17
LONDON (Alliance News) - Warehousing firm Norish PLC on Monday said it has raised GBP5.1 million by agreeing to sell new shares in order to execute a number of investment opportunities.
The placing and subscription of 11.4 million new shares to institutional and other investors was priced at 45.0 pence per share.
Shares in Norish were untraded on Monday afternoon at 45.25p.
Norish wants to invest in its cold storage division by increasing cold store capacity on existing sites and investing in additional blast freezer capacity at Wrexham in Wales. In addition, the company wants to scale up its commodity trading arm through acquisition and investment in additional traders, and has already identified an acquisition target.
The remaining proceeds of the placing will be used to invest in a "combination of dairy opportunities in Ireland and Missouri and/or other agricultural investments in the early part of the agricultural value chain".
The new shares stand to represent about 40% of the enlarged company. The placing requires shareholder approval.
The company said its directors have applied for 611,445 shares in the placing. It will increase their ownership to the equivalent of 21% of the company.
By Samuel Agini; [email protected]; @samuelagini
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