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LONDON (Alliance News) - Hardide PLC on Friday said it has conditionally raised GBP3.6 million in a share placing and subscription to fund the further expansion of its UK operations.
The surface coating technology provider intends to undertake a share capital consolidation so every 40 shares in issue will be consolidated into one new share.
Hardide also plans to issue 234.2 million placing and 5.8 million subscription shares at a price of 1.5 pence each, but in the event the share capital consolidation the issue price will be 60p.
Hardide shares were trading down 3.0% on Friday at 1.70p each.
The company plans to invest the proceeds in a new UK facility to replace its existing site. Newly completed premises close to its existing Bicester facility, in Oxfordshire, have been identified, with a 15-year lease expected to be signed in March and a rent-free period agreed until the end of 2019.
Additionally, Hardide has proposed to invest in three further coating reactors of differing capacities and dimensions.
"This is an extremely exciting time in the development of the company. The move to new, larger and modern premises, installation of additional coating reactors and the capability to process larger components will enable us to capitalise on our positive trading environment," said Chief Executive Philip Kirkham.
"We look forward to operating in a dramatically more conducive manufacturing environment and the new opportunities that will afford," added Kirkham.
