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(Alliance News) - Silverwood Brands PLC on Monday reported in-line trading as it unveiled an influx of fresh funds and the conversion of an existing loan into equity.
The holding company established to invest primarily in branded consumer businesses said Chief Executive Andrew Gerrie had subscribed for around 1.9 million shares at 54 pence each, raising GBP1.0 million.
In addition, Silver Americum Ltd, a company in which Gerrie and his wife each hold separate 20% interests, has agreed to provide an unsecured convertible loan of GBP0.5 million. Proceeds will be used for general working capital purposes.
Silverwood also announced that Castelnau Group Ltd has agreed to convert its unsecured loan facility of GBP4.4 million into equity in Silverwood. The conversion price is 54 pence per share, resulting in the issue of around 8.1 million shares to Castelnau.
Following conversion, Castelnau will own a 4.7% stake in Silverwood.
Silverwood said trading in six months to December 31 had continued in line with expectations in the second half of the financial year, with all the brands performing strongly.
It also released results for the six months to June 30. Revenue totalled GBP5.8 million, gross profit was GBP4.4 million with a pretax loss of GBP189,232. No comparisons were given.
Shares in Silverwood Brands were unchanged at 30.0 pence in London on Monday, while shares in Castelnau Group were unchanged at 77.23 pence.
By Jeremy Cutler, Alliance News reporter
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