(Alliance News) - Wealth management firm AFH Financial Group PLC said Friday it will raise up to GBP20 million through a convertible loan in order to fund its continued acquisition pipeline development.
The convertible loan - which will placed through a bookbuild - will mature in 2024 and have a 4.0% annual interest rate attached. Opening immediately, the placing is expected to close on July 11.
The loan currently has a conversion price of 420 pence per share. Conversion will be allowed to be undertaken quarterly from December 2019 until June 2024.
Shares in AFH were 0.6% lower at 358.00p in London on Friday, giving it a market capitalisation of GBP153 million.
"Alongside its strategy to drive organic growth, the board intends to continue to execute its strategy of making selective acquisitions within the financial planning and wealth management sector whilst providing a professional and cost-effective service to its clients," AFH explained in a statement.
AFH added that it "remains well positioned to take advantage of consolidation opportunities in the sector and currently has a strong near-term pipeline, with five potential acquisitions currently at various stages of the due diligence process."
"The company is undertaking the placing to provide it with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes," AFH continued. "The company is also currently exploring options to access additional capital, including the use of bank debt, to enhance its ability to undertake value-adding acquisitions and for general corporate purposes."
