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Proposed placing of shares in Zotefoams plc
Proposed placing of shares in Zotefoams plc.
About this update from Zotefoams Plc
[{"type":"text","content":"\n \nRNS Number : 1825O Zotefoams PLC 15 May 2018 \n\nTHIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFor immediate release\n15 May 2018\nZotefoams plc\nAccelerated bookbuild to raise up to approximately £20.6 million to fund investment in new manufacturing capacity\nand\nNew debt facility\nIntroduction\nZotefoams plc (LSE: ZTF) (\"Zotefoams\", the \"Company\" or, together with its subsidiary undertakings, the \"Group\") today announces a proposed placing of up to 3,886,792 new ordinary shares of 5 pence each (\"Ordinary Shares\") in the capital of the Company (the \"Placing Shares\") at a price of 530 pence per Placing Share (the \"Placing Price\") with existing and new institutional and other investors to raise gross proceeds of up to approximately £20.6 million (the \"Placing\").\n \nHighlights:\n· Placing of up to 3,886,792 Placing Shares at a Placing Price of 530 pence per Placing Share, representing up to 8.8 per cent. of the existing issued share capital of the Company, to raise gross proceeds of up to £20.6 million.\n· Placing Price represents a 2.9 per cent. discount to the closing middle market price of 546 pence per Ordinary Share on 14 May 2018.\n· New £57.5 million secured debt facility (plus a £25 million accordion feature) (the \"Facility\") agreed on attractive terms, to replace existing debt facilities of approximately £35 million.\n· The Facility and the net proceeds of the Placing to fund the planned capital investment of approximately £23 million in a new manufacturing facility in Central Europe (\"CE\") and higher working capital associated with organic growth and product mix enrichment from higher margin high performance products (\"HPP\") sales, in addition to existing capital investment programmes in the UK and the USA.\n· Preferred site identified in Pola...