LONDON - Animalcare Group plc (AIM: ANCR), a provider of animal health products, has successfully completed the issuance of 8,602,150 new ordinary shares, as announced on Monday. The placement, which represents approximately 14.2% of the company's pre-existing shares, raised gross proceeds of around £20 million.
The newly issued shares began trading Thursday morning, following the terms outlined in the fundraising announcement earlier this week. The proceeds from the share placement, after deducting transaction costs, are primarily allocated to finance the acquisition of Randlab Pty Ltd and its associated entities, an Australian equine veterinary business. The funds will also support Animalcare's strategy for growth and potential future acquisitions while maintaining a suitable leverage position.
The issue price was set at 232.5 pence per share, a 5.1% discount to the closing price on the previous Friday. This pricing strategy was implemented in accordance with the market's regulations and was aimed at ensuring a fair allocation process, with a degree of preference given to existing shareholders where possible.
The allocation process, overseen by the company in conjunction with Stifel, adhered to the soft pre-emption rights of current shareholders and complied with MIFID II requirements. Prior to the public announcement, the company and Stifel engaged in a wall-crossing exercise, consulting with major shareholders within the bounds of legal permissibility.
The decision to exclude a retail offer from the placement was made after discussions between Stifel and Animalcare, with the intention of simplifying the process and expediting completion. The company has stated that this strategy was chosen to minimize disruption and complexity in the fundraising process.
This equity raise is part of Animalcare's ongoing efforts to expand its international footprint in the animal health sector and to strengthen its financial position for future investment opportunities. The information in this article is based on a press release statement from Animalcare Group plc.
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