Woodbois raises £3m via share placing

Forestry company Woodbois revealed on Monday that it has raised gross proceeds of £3.0m by way of a placement of 250.0m new ordinary shares.

Woodbois stated the placing shares represented 10% of the company's existing ordinary share capital prior to the fundraise and said proceeds of the placing will be used for general working capital purposes.

The AIM-listed company added that it has entered into a placing agreement with Novum Securities, subject to which the latter has conditionally procured subscribers for the placing shares at the placing price of 1.2p per share.

Chief executive Paul Dolan said: "We are pleased to have successfully closed this limited and oversubscribed fundraise which will provide working capital for the company, including to assist in its further expansion and towards achieving full FSC certification.

"We have appointed Novum Securities Limited as joint broker to the company, to act alongside our existing broker Canaccord Genuity, in order to help our positive story become recognised by a wider audience."

As of 1110 GMT, Woodbois shares were down 5.51% at 1.20p.

Reporting by Iain Gilbert at Sharecast.com