(Alliance News) - Wealth management firm AFH Financial Group PLC said Friday it successfully raised GBP15 million through a convertible loan in order to fund its continued acquisition pipeline development.
In late June, AFH announced plans to raise up to GBP20 million through the loan notes offer. The offer closed on Thursday.
The convertible loans - placed through a bookbuild - will mature in 2024 and have a 4.0% annual interest rate attached.
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 1.6% lower at 360.00p in London on Friday, giving it a market capitalisation of GBP153 million.
When it launched the loan offer in late June, AFH explained that "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."
The funds raised by the offer would thus "provide it with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes", the firm explained.
