Published by MarketWatch
HARLAND & WOLFF RAISES GBP7.3 MLN VIA STOCK PLACING: SHARES FALL
Harland & Wolff Group Holdings PLC said Monday that it intends to raise at least 6 million pounds ($8.1 million) through a placing and up to GBP1.5 million in a retail offer.
The strategic-infrastructure-projects company said it intends to place 30 million new ordinary shares at 20 pence a share to existing and new investors, a 27.9% discount to its closing mid-market share price on Friday.
The company also intends to conduct a retail offer on the PrimaryBid platform, placing 7.5 million shares at the issue price.
The placing will be conducted in two tranches of GBP3.9 million and GBP2.1 million, with the second tranche and the retail bid conditional on shareholder approval, which will be sought at a general meeting on Dec. 10.
The proceeds will be used to deliver existing and expected contracts, secure further high-value contracts in the pipeline, satisfy performance boards and provide additional working capital.
The bookbuild is expected to close on Tuesday, and shares from the first tranche are expected to be admitted to trading on Nov. 26.
"As we move into an anticipated annualized cash breakeven position toward the end of 2021, there is now a clear path to profitability in 2022," Chief Executive John Wood said.