Hardide PLC on Friday said it has raised £550,000 in equity for the company’s ‘near-term cash requirements’.
The company issued 2.9 million new shares via a placing and subscription at 19 pence per share. Hardide shares were untraded in London on Friday but last closed at 20.00p.
The placing was available to institutional investors but not to the public.
Canaccord Genuity Group Inc agreed to subscribe for 400,000 shares. Canaccord is a related party of the company because it was already a substantial shareholder. Canaccord holds a 20% stake in Hardide, according to Morningstar.
Directors and an associate from the company supported the fundraising by subscribing approximately £200,000 for new shares, representing 40% of the total raising.
Non-Executive Director Andrew Boyce subscribed for 800,000 shares worth £160,000 bringing his share of the enlarged share capital to 13.3%.
finnCap Ltd and Allenby Capital Ltd acted as joint bookrunners for the placing.
Although the fundraising is intended for the company’s near-term cash requirements, Hardide expects further working capital will be required given ‘the challenging environment described in the company’s trading update announcement’.
Back in July, Hardide said revenue for the financial year ending September 30 was on track to meet management expectations, but it was seeing increased volatility.
Discussions are ‘ongoing’ with potential investors regarding new financing initiatives. Hardide said it was ‘pleased to have received a non-binding letter of intent relating to a sale and leaseback arrangement for the property in Martinsville which would, if completed, make a considerable contribution to the group’s financing needs.’
Hardide has a manufacturing facility in Martinsville, Virginia.
Hardide said it maintains a positive outlook beyond the near term as supply chains and markets continue their recovery and developments currently under way become realised. The company sees clear potential for the next financial year to show considerable improvement on recent years, it said.
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