(Alliance News) - McColl's Retail Group PLC on Friday said it has successfully raised GBP30 million as it looks to invest in its store estate and boost its partnership with Wm Morrison Supermarkets PLC.
The convenience retailer placed 150 million new shares at 20 pence each. The price represents a discount of 31% to the closing price of 29p per share on August 11.
Following the announcement, McColl's shares fell 2.8% to 21.00p each in London on Friday morning.
The GBP30 million raised is only marginally short of McColl's existing GBP33.4 million market capitalisation.
Proceeds from the bookbuild will be partly used to increase the number of Morrisons Daily stores from 56 to 350 by the conclusion of the financial year ending November 2022.
Improving the grocery infrastructure in the Morrisons Daily sites will also be prioritised, as will reducing the group's debt, McColl's reiterated.
The company originally earmarked plans to raise GBP35 million through the equity raise.
Each of the eight McColl's directors participated in the placing, together subscribing around GBP3.2 million in total for 16.0 million new shares at the offer price. Chief Executive Jonathan Miller subscribed for 15.0 million shares for a total of GBP3.0 million.
"Today's successful capital raise represents a transformational opportunity to accelerate our strategy and capitalise on the growth opportunity available to us in food-led convenience," Miller said.
Completion of the capital raising is conditional upon a general meeting expected to be held on September 1.
By Will Paige; willpaige@alliancenews.com
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Mccoll's (MCLS)