Bonhill Group raising £2.5m to fund it through the fourth quarter
Business-to-business media company Bonhill Group announced a proposed placing to raise a minimum of £2.5m at 5p per share on Thursday.
The AIM-traded firm said the net proceeds of the placing would be used to fund the working capital requirements of the company up to the fourth quarter.
It said the placing would take place in two tranches, with the first tranche of up to 4,858,569 new ordinary shares using its existing shareholder authorities to issue new shares on a non-preemptive basis for cash.
The second tranche of a minimum of 45,141,431 new ordinary shares would be issued subject to shareholder approval to be sought at a general meeting.
Each director of the company had indicated their intention to subscribe for new shares in the placing, Bonhill confirmed.
It noted that the placing price represented a discount of 23% to its closing share price on 8 April.
“The firm placing is conditional .. upon the placing agreement not having been terminated and becoming unconditional in respect of those shares,” the board said in its statement.
“The conditional placing is also conditional … upon the passing of the resolution by the shareholders at the general meeting.”
At 1316 BST, shares in Bonhill Group were down 10% at 5.85p.