YORK, UK - Animalcare Group Plc (AIM: ANCR), a prominent international animal health company, has initiated a fundraising effort to secure approximately £20 million through the issuance of new ordinary shares. The company disclosed on Tuesday the launch of a non-pre-emptive placing of 8,559,892 new ordinary shares at a price of 232.5 pence each, aiming to raise gross proceeds before expenses.
The fundraising initiative will partially finance the acquisition of Randlab, an Australian equine veterinary business, as detailed in a separate announcement released concurrently. The proceeds will also support Animalcare's strategy to maintain a suitable leverage ratio, allowing for continued investment in growth and potential future acquisitions.
In addition to institutional investors, the fundraising will see participation from company directors, including Jennifer Winter, Christopher Brewster, and Dr. Douglas Hutchens, who collectively will subscribe for 42,258 new ordinary shares at the same issue price, contributing £98,250. Alychlo NV, the company's largest shareholder, led by non-independent Non-Executive Director Marc Coucke, has indicated intent to partake in 10% of the fundraising.
The new shares are expected to equate to approximately 14.2% of the company's existing issued share capital. The fundraising is not contingent upon the completion of the Randlab acquisition, and vice versa. Should the acquisition not proceed, Animalcare plans to allocate the net proceeds towards other strategic acquisition opportunities and general corporate purposes.
The fundraising process, managed by Stifel Nicolaus Europe Limited as the Sole Bookrunner and Exclusive M&A Adviser, will be executed through an accelerated bookbuild among institutional investors. The timing and allocation of the shares are at the discretion of the Bookrunner and Animalcare, with results to be announced following the bookbuild's conclusion.
The company's board has received supportive feedback from shareholders regarding the fundraising and has determined it aligns with the best interests of shareholders and promotes long-term company success.
In a related board update, Animalcare has announced the appointment of Els Degroote as an alternate non-executive director to Marc Coucke, subject to official notice. Degroote, who has been with Alychlo NV since April 2022, brings extensive experience in corporate finance and M&A transactions.
This news is based on a press release statement from Animalcare Group Plc.
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