Listed windows and doors business raises £8.5m
Bradford-headquartered Safestyle, a retailer and manufacturer of PVCu replacement windows and doors, has announced the successful completion of its share placing.
50,000,000 shares were placed at the issue price of 17 pence per share, raising £8.5m before expenses.
This is subject to shareholder approval being obtained at the General Meeting of the company to be convened for 27 April 2020.
The placing was conducted by way of an accelerated bookbuild process. Zeus Capital and Liberum acted as joint bookrunners on the placing.
The net proceeds are intended to strengthen Safestyle’s balance sheet to ensure it can continue trading during and after the Coronavirus crisis.
An application will be made to the London Stock Exchange for the placing shares to be admitted to trading on AIM. It is expected admission of these shares will take place at or around 8am on 28 April 2020.
Mike Gallacher, chief executive officer of Safestyle, said: “The strong support received from our shareholders, both existing and new, in the current challenging market is hugely welcome.
“I am also delighted that the Board has also committed to contribute significantly to the placing, demonstrating all of our directors’ strong belief in the growth strategy and potential of the Group.
“The business has made strong progress in recent years and I believe that, as a result of the actions taken, we are well placed to weather the COVID 19 crisis and emerge to resume our recent positive momentum.
“Together with our existing funding arrangements, this equity fund raise significantly strengthens our balance sheet, providing further headroom should we need to extend our temporary shutdown in line with Government guidance, protecting the NHS and saving lives.
“The business acted promptly in ceasing all operations on 24 March 2020. I am grateful to our customers and staff who responded to this challenging situation and the disruption it has caused with such understanding and flexibility.”
Dan Bate, director of corporate finance at Zeus Capital, said: “We are delighted to have helped Safestyle UK raise £8.5m.
“The proceeds of the raise place the company in a resilient position to be able to operate through the COVID-19 pandemic and to recommence positive trading momentum thereafter.
“It has been a pleasure working with Mike Gallacher, Rob Neale and the Safestyle UK team on this transaction and on an ongoing basis, and we look forward to continue working with them in the coming years.”