LONDON (Alliance News) - Northbridge Industrial Services PLC on Monday completed share placings to raise GBP4.5 million, with a further GBP1.1 million to be raised through an underwritten open offer with existing shareholders, in a fundraising backed by its board of directors.
A total of 6.0 million shares were issued at 75 pence per share in the placings, of which 1.8 million were placed firm and a further placed subject to shareholder approval. The stock was down 7.7% at 78.50p on Monday afternoon in London.
Together with the underwritten open offer, the placing shares equate to a 23% stake in the company's new total number of shares.
"It has been a tough period for all companies with exposure to the oil market but we believe that our strengthened balance sheet, coupled with our swift and strategic response to market volatility, will lead to a refocussed and robust Northbridge going forward," Chief Executive Officer Eric Hook said in a statement.
The CEO's comments came as the industrial services and rental company said Monday it swung to GBP8.6 million pretax loss in 2015, having recorded a GBP6.3 million pretax profit a year earlier, citing a downturn in spending by oil and gas companies amid depressed oil prices.
Hook was one of several directors to back the fundraising, acquiring 106,668 placing shares and looking to take up 39,999 shares in the open offer. His stake in the company will fall to 2.5% from 2.7%. In total, directors subscribed for 1.1 million new shares in the placing and will seek to take up their basic entitlement in the open offer. That would see them invest about 1.4 million in Northbridge shares.
Chairman Peter Harris plans to take up 97,600 shares under the offer on top of 259,875 shares in the placing, reducing his shareholding to 6.1% from 6.6%.
Ian Gardner, a non-executive director, will retain a 0.1% stake in Northbridge, taking up 12,008 placing shares and 1,325 under the open offer.
His fellow non-executive Ash Mehta will see his shareholding rise to 0.7% from 0.5%, taking up 7,757 open offer shares and 78,910 placing shares.
Michael Dodson, another non-executive, will increase his stake to 0.8% from 0.4%, taking up 6,060 open offer shares and 118,940 in the placing.
Western Selection, chaired by non-executive David Marshall, will see its stake fall to 12.4% from 13.6%, as the shareholder takes up 200,000 shares in the open offer and 523,632 in the placing.
Their resulting stakes are based on full take-up of the open offer by shareholders.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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