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LONDON (Alliance News) - Norman Broadbent PLC on Thursday said it has raised GBP2.3 million through a share subscription priced at 9.50 pence per share, and hired a new non-executive chairman.
Shares in Norman Broadbent were untraded Thursday at 8.25 pence.
The recruiter said the subscription is conditional on approval of shareholders at a general meeting, to be held September 19.
A number of the company's significant shareholders participated in the subscription, Norman Broadbent said, along with new investors and some directors. These directors subscribed for around GBP70,000 in the fund-raising.
Chief Executive Mike Brennan subscribed for 526,315, taking his total holding in the company to 1.5%, whilst Chief Financial Officer and Operating Officer James Webber subscribed for 105,263 shares, as did Non-Executive Brian Stephens, leaving both with less than a 1.0% stake.
Norman Broadbent said it was raising the funds to build on its consolidation phase and move on to a medium-term-focused growth strategy. The company said it intends this to be a predominantly organic growth strategy, though it may consider smaller acquisition opportunities.
The funds will be used for hiring additional staff across the group, repaying secured loan notes which bear interest at 12% per annum, and for general working capital purposes, the company said.
Norman Broadbent also intends for Frank Carter to join its board as non-executive chairman following the general meeting. Carter is currently a senior advisor to auditor KPMG LLP, and has acted as an advisor to Norman Broadbent since June.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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