Sosandar share placing over-subscribed with £5.4m pledged following close of offer
Sosandar, the Wilmslow-based online women’s fashion brand, has seen its share placing exceed its £4m target.
This morning (February 8) it announced plans to raise around £4.5m to drive its omni-channel strategy.
It said it aimed to raise approximately £4m, ahead of expenses, from a share placing, and a further £500,000 from a retail offer for existing shareholders, which will close later this month.
This afternoon the business revealed it has conditionally raised gross proceeds of approximately £5.4m from existing and new investors through the share placing.
A total of 24,545,454 placing shares have been placed at 22p per share by Singer.
Co-chief executives, Ali Hall and Julie Lavington, said: “We are delighted to have successfully completed our placing, with both existing and new investors showing support for our business and future growth plans.
“We welcome the strength of support shown by our existing shareholders and would like to welcome new investors to the company.
“The progress and momentum that we have experienced over the last two years has been substantial. The strength of our brand and distinctive product range continues to resonate incredibly well with our large but underserved demographic and with this strong momentum, the board believes the opportunity for Sosandar is larger than ever.”
They added: “This opportunity has been demonstrated by us delivering a record performance in the third quarter of FY23 with a record number of visits to Sosandar.com and a record quarter for our third party partners.
“We see a number of opportunities for further growth both on our own site and through our third party partners in the coming months and beyond. Proceeds of the placing will provide the balance sheet flexibility to enable us to execute our omni-channel strategy, starting with increasing stock from autumn winter 2023 for the in-store launch with Sainsbury’s, fast-tracking other growth initiatives and accelerating our proven customer acquisition model.”
They said: “Our decision to become an omni-channel business will allow us to enhance our brand equity, accelerate market share growth both in the UK and internationally while also increasing both brand awareness and scalable growth potential.
“We are as confident as ever that the winning formula of our distinctive product range and effective marketing strategy will enable us to capitalise on the sizable opportunity available and continue to move forward on our journey to becoming one of the largest womenswear brands globally.”
Earlier this week Sosandar announced that its non-executive chairman, Bill Murray, had passed away over the weekend.
Mr Murray had worked with the founders of Sosandar since early 2014, assisted them with fundraising and numerous aspects of bringing the business to life and had chaired the Sosandar board since its inception at the start of 2016.