Placing to raise £5.25 million
“We are delighted to raise these funds, with the support shown by shareholders being a testament to the significant progress made within the business. The Company continues to build on its growing momentum following our strong results and recent re-brand, and alongside the acquisition of Lang, this Placing allows us to capitalise on opportunities to drive growth quickly and flexibly, be those organic capital investment or acquisitions.
“As the Group continues to evolve into a multi-category, design-focused and global business, we look forward to building on the strong foundations already in place, and achieve our vision of further profit growth underpinned by a unique blend of creativity and reliability.”
Paul Fineman, Chief Executive Officer
IG Design Group Plc, one of the world’s leading designers, innovators and manufacturers, of gift packaging and greetings, social expression giftware, stationery and creative play products, today announces that it has raised £5.25 million (before expenses) by way of a placing of 3,000,000 new Ordinary Shares at a price of £1.75 pence per share. The Company has undertaken the Placing following strong institutional demand from both new and existing Shareholders.
As the Placing Shares represent only 5 per cent. of the existing Ordinary Shares in issue, they are being allotted using the Directors’ existing authority to allot Ordinary Shares for cash on a non pre-emptive basis, as granted at the Company’s most recent AGM.
- Placing to raise gross proceeds of £5.25 million for the Company.
- The net proceeds of the Placing, will be used to:
– satisfy working capital requirements for the recent acquisition of Lang Companies Inc (“Lang”);
– support a capital investment project to build the Group’s capabilities in the UK to manufacture retail bags not for resale (‘Retail Collateral’); and
– provide the Group flexibility to pursue opportunities to drive further growth whether strategic acquisitions or capital investment.
- Strong support shown from both existing shareholders and new institutional investors, further diversifying the shareholder base and increasing the free float of the Company.
- As set out in the Company’s recent full year results the Company can confirm current trading remains strong and the Group’s outlook remains unchanged. Due to the minimal dilution from the Placing, the Board is maintaining its existing earning per share expectations which were upgraded following the Lang acquisition.