LONDON (Alliance News) - Northbridge Industrial Services PLC said Wednesday that it intends to raise GBP2.5 million through a placing of 2 million shares at a price of 125 pence per share.
Shares in industrial services and rental company were up 1.2% at 131.00 pence on Wednesday. The share placing price reflects a 3.5% discount to the closing price on Tuesday, which was 129.5p.
Proceeds will partly go towards payment of the outstanding deferred consideration which is due to the vendor of Tasman Oil Tools Ltd and Tasman Oil Tools Leasing Ltd. The remainder will go into working capital to prepare for further investment in oil field rental equipment.
"This placing of new equity, taken together with the issue of the convertible loan notes in April 2018, has been well supported by a number of our major shareholders. It ensures that we are in the best possible position to take advantage of a recovery in our markets and brings down our net gearing to below 20%," Chief Executive Officer Eric Hook said.
Northbridge is expected to have 28.1 million shares in issue overall following the placing. Stockdale Securities Ltd is acting as agent for Northbridge.
