LONDON (Alliance News) - Shares in eve Sleep PLC fell Thursday after the online mattress seller said that it has secured subscribers for GBP9.9 million worth of new shares, significantly lower than the previously announced GBP15 million equity issue plan.
eve Sleep shares were trading down 20% at 11.35 pence each on Thursday morning.
The company, however, added that trading has continued to be strong which will boost annual revenue.
For the 11 months to November 30, the company's revenue stood at GBP33.0 million, leading the company to believe its revenue for 2018 will be "above market expectations". In 2017, eve Sleep reported revenue of GBP27.7 million.
eve Sleep said that funds managed by Woodford Investment Management Ltd have indicated that they intend to subscribe for up to GBP8.0 million worth of shares at 10.00p per share. Channel 4, an investor of the company which also provides advertising services to evel Sleep, intends to subscribe for GBP900,000.
The company's Chairman Paul Pindar has indicated to subscribe for GBP1.0 million in shares and Chief Executive Officer James Sturrock intends to acquire GBP20,000 in shares.
The company has also received indications from other potential subscribers and remains in discussions with them.
In November, eve Sleep said it plans to raise around GBP15 million of new equity to double its product range and invest in marketing activities.
