LONDON (Alliance News) - DX Group PLC on Thursday announced a share placing worth GBP4.8 million, and also plans to cancel loan notes.
DX is to place 48.6 million shares in a placing and 7.4 million in a subscription.
The funds will be used to expand its sales capabilities, open new depots, improve IT systems, separate its DX Express networks, assist with working capital, and redeem GBP262,500 loan notes.
DX is to issue between 304.2 million and 322.3 million cancellation shares to cancellation loan note holders with the final amount to depend on its closing price on May 22.
It will also pay accrued interest to loan note holders in cash worth GBP1.1 million, with the cancellation freeing it from GBP2.0 million of interest payments a year.
Chairman Ron Series said: "We are pleased to announce these proposals to strengthen DX's balance sheet and raise additional funds for the business. Once approved by shareholders, these initiatives will place the company in a significantly improved position as we proceed with our turnaround plan.
"The new board's objective is to set the business onto a sustainable path for profitable growth, and some six months on since our appointment, we are progressing steadily with our plans. We retain our strong conviction that we can unlock the latent strengths of the business, and set DX on the road to long-term profitable growth."
Shares closed flat on Thursday at 9.60p.