(Alliance News) - YOLO Leisure & Technology PLC said Wednesday it plans to raise GBP750,000 through a placing, which will be conducted in two tranches over the rest of 2019.
Shares in the technology, travel, leisure and media investment firm were 12% higher at 2.9 pence on Wednesday in London.
The placing is to be conducted in two tranches, at an issue price of 2.5 pence per share, a 3.8% discount to YOLO's closing price on Tuesday at 2.6p.
The first tranche will raise GBP500,000 through the issue of 20.0 million shares, payable on Friday next week.
For the second tranche, a subscription commitment was made by shareholder Chris Akers for GBP250,000, through the issue of 10.0 million shares and 2.5 million warrants.
Each warrant is for two shares and exercisable at 6.5p. YOLO said it will make a further announcement to confirm the second tranche of the placing.
Following the first tranche, YOLO will have 72.1 million shares issued overall.
In addition, following a review of its investment strategy, YOLO said it will need to focus on technology opportunities in the field of big data, machine learning and telematics.
But to implement this investment strategy, the group said it will require a stronger board structure, and has started a process to find new directors with more specialist sector experience.
"The YOLO board has been evaluating various strategic options to optimise value creation in the best interests of all shareholders. We believe that now is the right time to undertake a strategic review to ensure that YOLO is best placed to capitalise on exciting future opportunities. We look forward to updating shareholders to that effect in the near future," said Chief Executive Officer Simon Robinson.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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