Redhall Group seeking to raise millions on the stock market
LISTED engineering business Redhall Group is aiming to raise £5.8m on the stock market to fund future growth and bring down its debts.
The firm – which has an operation in Redditch – is aiming to raise the money through a proposed placing and an open offer of up to 115,320,814 new ordinary shares of 0.01 pence in the capital of the Company at a price of 5p per share.
As part of the proposals, Henderson, HSBC Bank and the company have entered into the debt conversion agreement and agreed that, subject inter alia to admission, £3m of the Henderson sebt will be converted as consideration for the issue (credited as fully paid) of 41,500,000 conversion shares and the grant of the 18,500,000 conversion options.
Redhall says it will use the money raised to support the growth of its existing businesses following the completion of the first stage of the company’s turnaround.
The firm said the additional funding will allow it to address significant, long-term market opportunities and that the placing, open offer and debt conversion could reduce the group’s debt by up to £8.3m (after expenses).
Redhall chief executive Phil Brierley said: “We have made significant progress in the past year in transforming Redhall into a company focused on multi-disciplinary manufacturing and specialist services, which offer higher margins and lower risks.
“The proposals announced today, through restructuring the balance sheet and providing additional funding, will position Redhall to take advantage of the significant growth opportunities in our marketplace.”
