(Alliance News) - Sondrel Holdings PLC on Tuesday said it raised GBP5.6 million from a subscription of new shares by a single investor, and said its chair will step down once the equity raise is completed.
The Reading, England-based semiconductor design services firm said it will issue 56.3 million new shares at a price of 10 pence each under the subscription by Rox Equity Partners Ltd.
Sondrel shares were up 61% to 7.40 pence on Thursday afternoon in London.
Sondrel also said its loan agreements with Rox, which it entered in March, will be converted into 28.7 million further new shares.
Assuming regulatory approvals are met, ROX will hold 85.0 million Sondrel shares or 49% of its enlarged share capital.
Admission of the new shares for trading on AIM in London is expected to take place at the opening bell of May 31.
At that time, Non-Executive Nigel Vaughan will step down from the board, and David Mitchard will become chair and in addition to interim chief executive officer until "such time as a suitable candidate can be found".
Sondrel also will add two other non-executive directors. Miles Woodhouse will represent Rox, while Fred Walsh will be a new independent non-executive director. Walsh is managing director of Investment Banking at Stifel Nicolaus Europe Ltd.
Sondrel said the fundraising is required to continue operations, with the cash being used to settle existing creditors, meet the company's immediate working capital requirements, and execute the strategic plan it announced in late March.
By Greg Rosenvinge, Alliance News senior reporter
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Sondrel Plc (SND)