27th Mar 2025 11:42
(Alliance News) - THG PLC on Thursday confirmed the structure of its GBP90 million fundraise, consisting of a GBP22 million share placing and a GBP68 million convertible loan, with Founder & Chief Executive Officer Matthew Moulding contributing two-thirds of the total.
The Manchester, England-based e-commerce firm of beauty and nutrition products and parent company of online retailers LookFantastic and CultBeauty, said the equity contribution includes 68.5 million new shares issued at 32.3 pence each. Admission of the shares to trading is expected to take effect on Friday.
Shares in THG were up 0.7% at 35.06 pence in London on Thursday morning, giving the company a market capitalisation of GBP463.0 million. The stock is down 48% over the past 12 months.
THG confirmed that CEO Moulding is no longer expected to pay up any partly paid shares as part of the equity contribution. This marks a change from what the company announced on Tuesday, when THG said Moulding's GBP60 million commitment would include GBP54.6 million via a convertible loan and GBP5.4 million through the paying up of 17.4 million partly paid F and G shares.
Moulding's contribution will now be delivered entirely via the GBP54.6 million convertible loan, with no equity investment via partly paid shares proceeding.
The conversion date of the loan into equity has been deferred to December 4, subject to shareholder approval. THG said some earlier conversion may be possible under specific conditions.
The proceeds from the raise will be used to repay one term loan in full and reduce another, as the company seeks to strengthen its balance sheet. THG recently completed the demerger of its Ingenuity division and expects adjusted earnings before interest, taxes, depreciation, and amortisation of GBP123 million for 2024, including Ingenuity.
The placing is run by Barclays PLC as global coordinator, bookrunner and joint corporate broker.
THG, formerly known as The Hut Group, joined the FTSE 250 on Monday and will report full-year results and a first-quarter trading update around April 30.
By Eva Castanedo, Alliance News reporter
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