|
Regional REIT Ltd shares fell on Thursday, after the commercial property investor announced a £110.5 million fundraising plan. It will raise the funds through a placing, overseas placing and open offer of 1.11 billion shares at 10p each. Shares in Regional REIT were down 30% to 15.27 pence each in London on Thursday morning. The overseas placing concerns existing shareholders in ‘certain restricted jurisdictions’ where an open offer cannot be made. In addition, it announced a 1 for 10 share consolidation. The fundraise will enable it to repay a £50 million retail bond. It added that £26.3 million will go towards trimming debt and remaining £28.4 million will provide it with ‘provide additional flexibility to fund selective capital expenditure on assets’. Chair Kevin McGrath said: ‘The capital raising, supported by Bridgemere, will enable the company to strengthen significantly Regional REIT’s financial position, reducing indebtedness and provide the company with greater financial flexibility and liquidity headroom.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
