InnovaDerma PLC (LON:IDP) has unveiled plans to raise up to £4.5mln in a bid to strengthen its balance sheet as well as enhance its ecommerce infrastructure and accelerate its direct-to-consumer strategy.
The beauty and personal care products group said the fundraising is comprised of an oversubscribed placing of around 11.4mln new shares at a price of 35p each, a 28% discount to its closing price on Tuesday, to raise £4mln as well as an open offer to qualifying shareholders for up to 1.45mln new shares at the same price to raise up to £500,000.
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“InnovaDerma was trading well prior to the onset of COVID-19. This placing will ensure we can enhance our strong ecommerce infrastructure and operational capacity to capitalise on significant growth opportunities in the digital space as we emerge from the pandemic”, InnovaDerma chief executive Blake Hughes said in a statement.
The company’s shares were 12.5% lower at 43p in mid-morning deals on Wednesday.