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LONDON (Alliance News) - Accrol Group Holdings PLC said on Tuesday it intends to raise GBP8.0 million through a placing of 53.3 million shares at a price of 15.0 pence per share.
Shares in the tissue converter were down 4.0% at 18.25 pence on Tuesday.
Proceeds will go towards ensuring the restructuring programme to improve operational efficiencies can continue, paying the costs associated with the placing and support future working capital requirements.
The shares raised are expected to reflect a 29% interest in Accrol's enlarged share capital.
Several directors are expected to take part in the placing.
Executive Chairman Daniel Wright will purchase 1.3 million shares for GBP200,000, giving him 1.7 million shares in total, or a 1.0% stake.
Chief Executive Officer Gareth Jenkins will acquire 500,000 shares for GBP75,000, meaning he will hold 600,000 shares, or a 0.3% interest.
Interim Chief Financial Officer Martin Leitch will buy 266,666 shares for GBP40,000, which makes up his entire shareholding.
Non-Executive Director Joanne Lake is expected to purchase 33,333 shares for GBP5,000, giving her 68,333 shares in total.
In addition, Accrol has proposed an open offer to raise a further GBP2.0 million from shareholders by issuing 13.3 million shares at the same price.
"Accrol's turnaround is gathering momentum and the new executive team appreciates the support of our shareholders in backing our plan through this fundraising. The recovery is underpinned by simplifying the business, in this way re-establishing our low-cost advantage to reinforce our market leading position," Wright said.