12th Feb 2016 09:23
LONDON (Alliance News) - Venture Life Group PLC on Friday said it wants to raise up to 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 said it is aiming to sell up to 2.4 million new shares at 70 pence each, equivalent to 7.1% of its existing shares, to raise up to GBP1.7 million. It has received full commitments for up to GBP800,000 of that amount.
Shares in Venture Life last traded at 78p on February 2.
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.
Both the placing and bond issue are subject to shareholder approval.
Panmure Gordon is handling the accelerated bookbuild placing.
By Samuel Agini; [email protected]; @samuelagini
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