LONDON (Alliance News) - EU Supply PLC, the UK holding company of Sweden-based e-commerce business EU Supply Co, Wednesday said it has raised GBP1.35 million in a placing of 4.1 million new shares at 33 pence each with institutional and other investors.
EU Supply said the funds will be used to strengthen the company's balance sheet, provide working capital to support the growth of the business, and give it additional funds for sales and marketing.
According to the company's statement, the shares were issued at a 4.8% premium to the closing mid-market price of the company's shares on Tuesday. EU Supply shares were Wednesday quoted down 0.50 pence, or 1.6%, at 31.00 pence.
The new shares will represent a 6.6% stake in the EU Supply's enlarged share capital.
EU Supply has repaid debt and recruited a sales team in the UK, Denmark and Sweden since it raised GBP5.0 million in its November 2013 float on the London Stock Exchange Group's AIM market.
On Wednesday, EU Supply said that the team is making "rapid progress" through its prospect list, meaning that the pipeline of sales opportunities has grown and is anticipated to generate revenue growth from the second-half of 2014.
The company said Steffen Karlsson, a non-executive director, subscribed for 606,060 new shares under the placing. He will own a 2.2% stake in the company, some 1.3 million shares.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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