10th Mar 2022 11:57
(Alliance News) - Parsley Box Group PLC on Thursday revealed plans for a GBP7.0 million equity raise, a day after its shares plunged by a quarter.
The Edinburgh-based meal delivery firm had made no announcement on Wednesday to trigger the sharp fall in its share price. However, before the market open on Thursday, the company announced plans for a GBP5.9 million share placing and an open offer to raise up to GBP1.1 million.
The issue price will be 20 pence. Parsley Box listed in March last year at 200.00p per share, but shares have wilted since, amid lower order numbers and restricted stock availability.
Shares closed at 18.00p on Wednesday, down 25% on the day. They were quoted at 21.80p late Thursday morning, up 21%, though still down 22% in the past five days.
Back in December, Parsley had warned it planned to raise further funding in the first quarter of this year. On Thursday, it said it will use the fresh cash to target new customer acquisition and "develop an online customer journey tailored to our demographic".
Parsley delivers ready meals to the 'baby boomer' generation, born after the World War Two and broadly defined as aged 60 and over. Its London Stock Exchange ticker code is MEAL.
The placing will be run as an accelerated bookbuild by finnCap Ltd, Parsley's nominated adviser and broker. The open offer will be on the basis of 3 new shares for each 23 already held. Directors will invest GBP4.2 million, or 60% of the total fundraise.
By Tom Waite; [email protected]
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