(Alliance News) - Online womenswear brand Sosandar PLC on Wednesday said it raised GBP5.0 million through a share placing to fund marketing spending.
Sosandar placed 29.4 million shares at 17 pence each, through an accelerated bookbuild. The price was a 5.6% discount to its Tuesday closing price of 18p.
The stock was trading 2.0% lower at 17.64p in London on Wednesday afternoon.
Joint Chief Executive Officers Ali Hall and Julie Lavington said: "We are very pleased to have successfully raised GBP5 million through this placing, with both new and existing shareholders showing their support for the business and our growth plans.
"We are excited that the company is now in a position to continue growing our active customer base, accelerate growth further and work towards establishing Sosandar as the leading fashion brand for our target audience and a profitable business."
The company announced plans to conduct the placing earlier on Wednesday.
Sosandar said: "The net proceeds raised from the placing are expected to be used to provide further support for the continuation of company's recently accelerated and successful growth strategy."
In September, Sosandar began television advertising in the north west of England with UK television station ITV, to "encouraging" early results, the company said at the time.
It has also advertised on digital panels alongside escalators at London underground stations including Euston and King's Cross St Pancras.
Sosandar added: "These new marketing initiatives significantly increased the company's brand recognition and awareness.
"Given the continued strong performance of the company and the results from its recently accelerated growth strategy, the board believes that the potential opportunity for the company is significantly bigger than previously thought. Accordingly, the board believes that it is in the best interests of the company to raise additional equity to allow the company to continue with its accelerated growth plan."
By Eric Cunha; ericcunha@alliancenews.com
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Sosandar (SOS)