On 12 April 2017, Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, announced that the Company was raising up to £2.02 million through the issue of up to 4,812,247 New Ordinary Shares at a price of 42p per share in the Open Offer.
The Open Offer closed at 11.00 on 27 April 2017 and the Company is pleased to announce that it has received valid acceptances from Qualifying Shareholders, including under the Excess Application Facility, in respect of 3,416,319 Open Offer Shares, representing 71 per cent of the New Ordinary Shares available in the Open Offer. Valid applications under the Excess Application Facility will be met in full.
The proceeds of the Open Offer therefore amount to £1.44 million (before expenses).
In addition, the Company has raised a further £0.98 million (before expenses) through the issue of 2,343,166 New Ordinary Share to the Subscribers, also at a price of 42p per share. This amount is greater than the £0.82 million referred to in the Circular, reflecting increased demand from the Subscribers.
The net proceeds of the Open Offer and the Subscription are estimated to amount to approximately £2.38 million and will be used by Capital for Colleagues to make further investments in line with the Company’s investment strategy and to provide working capital for the Company’s ongoing operations.
Commenting on the success of the fundraising, John Eckersley, Chief Executive of Capital for Colleagues said:
“We are delighted with the result of this fundraising and the support from existing shareholders and new investors in the Company. We believe that this is testament to the strength of our strategy, the quality of the companies in our portfolio and the recognised investment potential of the EOB sector. As “patient capital” becomes increasingly important to EOBs, we remain well placed to capitalise from the many investment opportunities that are available to us.”