(Alliance News) - MySale Group PLC on Tuesday said it intends to raise at least GBP10.0 million before expenses from a share placing.
The online retailer said the placing will enable it to repay its bank debt, meaning that it will operate on a debt-free basis, improving cash flow. The fundraising also will support the restructuring of MySale into an Australia and New Zealand-focused retail marketplace platform - what it calls its "ANZ First" strategy.
Some 79% of MySale shareholders have supported the placing of 500.0 million shares at a price of 2 pence each. The placing will be conducted by way of an accelerated bookbuild run by N+1 Singer Advisory LLP.
The placing price represents a discount of 58% to the closing price of 4.75 pence on Monday. On Tuesday morning, MySale shares were trading 47% lower in London at 2.50p each, giving it a market capitalisation of GBP3.9 million.
Looking forward, MySale proposed an open offer for up to a further GBP2.0 million to be launched in due course.
"During the last 12 months the MySale business has contended with a series of significant challenges, particularly in its core Australian market," noted Chief Executive Carl Jackson.
"The future offers significant opportunities which we will be well placed to capitalise on. We will be debt free and expect to be cash flow positive," added Jackson.
MySale also said Founder & Executive Vice-Chair Jamie Jackson has decided to step down after the forthcoming general meeting.
Therefore, the company said it intends to strengthen the board with the appointment of three new additional non-executive and executive directors, including a chief financial officer.