Safestyle raises £8.5m to ensure business through coronavirus crisis

Credit: hedgehog94

Safestyle UK has successfully raised £8.5 million in a share placing to strengthen its balance sheet and ensure it can continue in business through the coronavirus crisis.

A total of 50,000,000 Placing Shares have been placed at the Issue Price of 17 pence per share. The placing agreement was announced yesterday (7 April) by the listed Bradford-based retailer and manufacturer of PVCu doors and windows.

The company’s directors have in aggregate subscribed for 619,000 Placing Shares at the Issue Price.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. This is anticipated to take place on 28 April.

“The strong support received from our shareholders, both existing and new, in the current challenging market is hugely welcome. I am also delighted that the Board has also committed to contribute significantly to the placing,” said CEO Mike Gallacher.

He added: “The business has made strong progress in recent years and I believe that, as a result of the actions taken, we are well placed to weather the COVID 19 crisis and emerge to resume our recent positive momentum.

“Together with our existing funding arrangements, this equity fund raise significantly strengthens our balance sheet, providing further headroom should we need to extend our temporary shutdown in line with Government guidance, protecting the NHS and saving lives.”