(Alliance News) - Gas and electricity services firm Bilby PLC said Friday it raised GBP2.0 million through a heavily-discounted share placing and subscription as it looks to secure working capital whilst it negotiates new debt facilities.
Under the placing and subscription, Bilby issued 18.2 million shares at 11.00 pence per share. The share represented 45% of the existing share capital in the firm and were placed at a 52% discount to the share price at the close on Thursday.
Of these shares, 2.9 million - raising GBP315,000 - were subscribed to by directors of the AIM-listed firm. Subscribing directors were Chief Executive Officer David Bullen, Chair Sangita Shah, Chief Operating Officer Lee Venables, Finance Director Clive Lovett and Executive Director Chris Webster.
Shares in Bilby were 37% lower at 14.55 pence in London on Friday.
"We would like to thank shareholders for their support," Chief Executive Officer David Bullen said. "The funds raised will provide additional working capital to the group and together with temporary amendments to the financial covenants in the existing debt facilities will provide us with additional time and flexibility to agree new debt facilities with rebased financial covenants, a process which may involve a further equity fundraising."
"The board remains confident in the group's prospects", Bullen added.
Following admission of the new shares - expected next Wednesday - Bilby will have 58.7 million shares outstanding.
By Ahren Lester; ahrenlester@alliancenews.com
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