14th Oct 2014 09:27
LONDON (Alliance News) - Superglass Holdings PLC shares dropped sharply on Tuesday after it said it had completed a discounted share placing to raise GBP6.3 million, and also agreed new financing facilities with Close Brothers Group PLC.
The insulation manufacturer said it has raised GBP6.3 million via a placing with institutional and sophisticated private investors. It issued 125 million shares at 5 pence a share, a big discount to its closing price of 9.75 pence per share on Monday.
Shares in the company dropped 39% to 5.9 pence on the back of the news, making it the worst performer on the London market on Tuesday.
Bronsstädet AB, a Swedish private equity firm, has provisionally agreed to subscribe to 60 million of the new shares, representing around 39% of the total number of new shares under the capital reorganisation and placing agreement, Superglass said.
The net proceeds from the placing are expected to be used to meet the expenses associated with the group's plan to reduce operating costs, provide working capital and finance trading losses this year.
In addition, the company said it has secured GBP4.8 million in banking facilities from Close Brothers, replacing an existing deal with Clydesdale Bank.
"The board believes that the placing will provide Superglass with a considerably strengthened and sustainable long term capital structure," said Superglass Chairman John Colley.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SPGH.L