3rd Feb 2020 17:26
(Alliance News) - Two Shields Investments PLC on Monday said it has raised GBP1.4 million through a share placing for the development of its 11% investee BrandShield Ltd.
The AIM-listed investment company said it has placed 1.40 billion shares to its existing and new investors at a price of 0.1 pence per share.
Two Shields shares closed 2.6% lower on Monday at 0.10p each, giving it a market capitalisation of GBP4.5 million.
The placing was undertaken by the company's newly appointed joint broker Optiva Securities Ltd.
Placing proceeds will support the development of portfolio company BrandShield, whereby Two Shields intends to exercise its option to invest a further USD1.0 million by way of subscription to a convertible loan note, which has a 2.5% coupon.
Two Shields invested USD300,000 into BrandShield in March 2019 and USD500,000 in November 2019.
Should Two Shields's existing USD800,000 and proposed USD1.0 million of loan convert into equity, its holding in BrandShield will increase to almost 21%.
BrandShield has indicated an intention to list on the AIM Market of the London Stock Exchange. The listing is expected to take place in the second quarter of 2020.
"This fundraising will enable Two Shields, in line with our strategy, to take advantage of the investment opportunity that still exists on the same terms as previous subscriptions by the company," explained Two Shields Chair Andrew Lawley.
He added: "Given the excellent growth that BrandShield is delivering, and the progress it is making towards its AIM listing, we believe this investment is structured on attractive terms for our shareholders."
By Evelina Grecenko; [email protected]
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