12th Feb 2016 12:32
LONDON (Alliance News) - Venture Life Group PLC on Friday said it is raising GBP3.7 million through a share placing and convertible bond issue to help fund the acquisition of privately owned Periproducts Ltd for about GBP5.6 million in cash.
Periproducts is a UK-based oral care products company with a range of premium products, including toothpastes and alcohol-free mouthwashes. It made a GBP200,000 operating profit on revenue of GBP2.8 million in the year ended November 30.
"The product range of Periproducts is a premium range in the medicated mouthwash category, and significantly strengthens our oral care portfolio. The products hold a strong position in the UK pharmacy channel, and have been present there for over 15 years," Chief Executive Jerry Randall said.
"However, there has been limited internationalisation of the range and, as this is an area of expertise for the group, we expect to grow the international presence of this brand significantly," Randall added.
Venture Life expects the deal to boost earnings in its first full year of ownership.
The consumer healthcare group later confirmed the sale of roughly 2.4 million new shares at 70 pence each, equivalent to 7.1% of its existing shares, raising GBP1.7 million. Shares in Venture Life were down 5.8% at 73.00p on Friday.
Lynn Drummond, non-executive chair, took up 7,143 shares, giving her a shareholding of 0.1% or 18,365 shares, while Chief Executive Jerry Randall took up 150,000 shares, giving him a holding of 10.7% or 3.9 million shares. Chief Financial Officer James Hunter acquired 7,143 shares, giving him a holding of 0.1% of the company or 43,840 shares.
Sharon Collins, commercial director, bought 198,251 shares, giving her 1.6 million shares, a 4.3% stake in total, while Gianluca Braguti, director of manufacturing, took up 142,857 shares to take his holding to 7.1 million shares or a 19.2% stake.
The convertible bond is intended to raise up to GBP2.0 million, of which GBP1.5 million has been underwritten. Some of the company's directors may participate in the convertible bond issue to ensure that at least GBP1.9 million is raised.
Braguti and Randall entered a joint underwriting commitment for GBP400,000 of the convertible bond issue. Any bonds they acquire will be convertible into equity at a share price of 87.5 pence, a 25% premium to the placing price.
Both the placing and bond issue are subject to shareholder approval.
By Samuel Agini; [email protected]; @samuelagini
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