1st Oct 2015 07:17
LONDON (Alliance News) - RM2 International SA Thursday said it has successfully completed the bookbuild in respect of the placing of 75 million shares, raising GBP30 million of gross proceeds.
The company, which develops and sells shipping pallets and provides related logistical services, said that the shares were placed at 40 pence each with new and existing shareholders and certain directors.
8.2 million shares have been allocated to Verlinvest SA, but RM2 said that this is subject to approval from Verlinvest's board. If it does not receive board approval, the gross proceeds of the placing will be GBP26.7 million. If it does receive approval, Verlinvest will hold 40.6 million shares, representing 10% of RM2's issued share capital.
Woodford Investment Management LLP has subscribed for 39.5 million shares. Following completion of the placing, it will hold 107.5 million shares, representing 27% of the company's issued share capital, assuming that Verlinvest also participates.
Meanwhile, Chief Executive John Walsh subscribed for 4.2 million shares, and following the placing will hold 26.4 million shares representing 6.6% of the company's issued share capital.
Chairman Ian Molson subscribed for 1.6 million shares, and following the placing will hold 11 million shares representing 2.8% of RM2's issued share capital.
The placing shares represent approximately 23% of the company's issued share capital prior to the placing.
RM2 will use the proceeds of the placing to fund the production of pallets, for working capital and sales and for general administrative costs.
"Following our recent announcement regarding production changes and commercial progress the company has taken the opportunity to strengthen its balance sheet through additional investment from new and existing shareholders," Walsh said in a statement.
"We are grateful for the support and commitment of our shareholders and look forward to 2016 being a year of significant deployment of our assets," he added.
Shares in RM2 were trading down 2.2% at 44.00 pence at the open on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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