AFH on the hunt for acquisitions after £6.4m fundraising initiative is backed

SHAREHOLDERS in Worcestershire IFA AFH have approved plans for a £6.4m fundraising initiative.

On December 9, 2015, AFH announced proposals to raise gross proceeds of up to £6.50m by way of a share placing of 2,727,273 new ordinary shares and a subscription of up to 1,212,121 new ordinary shares at a price of 165p per new share.

The move was conditional on the approval of shareholders at a general meeting.

In a short statement to the London Stock Exchange, the board of AFH, said all the resolutions at the meeting had been passed.

As a consequence, the Bromsgrove-based firm said it would not be proceeding with a £6.39m placing and subscription. It is proposed that the net proceeds of the fundraising, estimated to be £6.16m, will be used by the company to fund future acquisitions and to meet working capital requirements.

The company said it had already identified a portfolio of potential acquisition targets for 2016.

Alan Hudson, AFH CEO said: “We are delighted to welcome our new shareholders on board, including the River and Mercantile UK Micro Cap Investment Company and Octopus Investments, and we would like thank our existing shareholders for their continued support.

“We look forward to 2016 with optimism, following another strong year of performance across the company.”