Retailer to raise £5.5m to help it through COVID-19 crisis
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One of Europe’s largest retail chains is to raise £5.5 million in a share placing to boost its balance sheet to help it through the COVID-19 pandemic.
Angling Direct, which has 36 stores across England that are due to open again on Monday following an easing of the lockdown rules, says that the funds will be used to provide further protection against the fall-out of the Coronavirus and to pay suppliers to secure products during what it believes will be a period of high demand.
In a filing to the London Stock Exchange posted this morning the company added: “At a time when greater certainty exists, the Board anticipates the company will allocate any surplus funds from the placing to growth opportunities.”
The share issue has been priced at a minimum of 50p, a 15% discount on its close price last night and will be carried out in two tranches. The first is expected to raise £3.23m and the second £2.27m, with both parts expected to have been completed by July 1st.
As reported in last week’s Communique Online, Angling Direct reported record sales for 2019 of £53.2m, but an EBITDA loss of £0.5m.