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Lok’n Store Group PLC on Friday said raised £20.5 million via an equity fundraise of new shares, exceeding its expectations of the placing and retail offer. The London-based self-storage provider said the total gross proceeds were made via the issue 2.7 million new shares at a price of 765 pence each. On Thursday, Lok’n Store proposed the fundraise, which intended to raise £18 million. This means Friday’s fundraise was oversubscribed and exceeded this target by around £2.5 million. It said the placing price represented a discount of 12% to Lok’n Store’s closing price of 870p per share on Wednesday in London. On Thursday, Lok’n Store closed 3.4% lower at 840.00p. Shares in Lok’n Store were down 8.4% to 777.04p each in London on Friday morning. Across 2023 so far, they were down 20%. The fundraise was conducted via a placing and REX retail offer, Lok’n Store said. The new shares represent approximately 8.9% of the company’s current issued share capital. The proceeds of the fundraise will be used to support the development of the company’s Landmark store programme in the UK to include new freehold and leasehold self-storage sites. ‘I would like to thank existing shareholders for their support and welcome new shareholders to the company. This funding will support the growth of the company in the structurally under-supplied UK self-storage market,’ said Chair Andrew Jacobs. ‘Our pipeline will, when fully operational, add 37.7% to available space, which, as those new stores fill up, will generate more cash flow for future growth investment and increased distributions to shareholders.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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