14th Jun 2024 15:17
(Alliance News) - Superdry PLC on Friday said shareholders have backed a planned equity raise as it battles to restructure its ailing finances.
In response, shares in Superdry leapt 15% to 4.00 pence in London on Friday afternoon.
All resolutions put at a general meeting on Friday were approved by shareholders, Superdry said in a statement.
As a result, Superdry said the Independent Directors have decided to implement a GBP10 million placing.
This was one of two options being considered by Superdry to shore up its financial position. The other was a GBP6.9 million open offer.
Superdry said the Independent Directors took into account a number of factors, such as liquidity requirements, the interests of its creditors, participation in the open offer and the level of support for the relevant resolutions.
They considered the placing provides greater comfort that the company will have sufficient liquidity headroom to implement its turnaround plan, particularly taking into account the ongoing challenging economic environment.
Chair Peter Sjolander said he was pleased shareholders have supported the proposed equity raise.
"This is a crucial step towards delivering the restructuring of the business and ensuring that Superdry is in the best possible shape to complete its recovery and return to growth," he added.
Around 90% of shareholders backed a proposal to delist shares in Superdry.
The last day of trading in Superdry shares is expected to be July 12.
By Jeremy Cutler, Alliance News reporter
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