// Sosandar plans to raise £5.24m to invest in stock from the autumn and winter season onwards
// The womenswear retailer proposed a placing of 26,190,210 new ordinary shares of 0.1p each
// The placing was conducted via an accelerated “bookbuild” at a price of 20p per share to raise £5.24m
Sosandar has revealed plans to raise almost £6 million to invest in stock from the autumn and winter season onwards as it extends partnerships with John Lewis, Marks & Spencer and Next.
The online womenswear retailer proposed a placing of 26,190,210 new ordinary shares of 0.1p each on Monday.
The placing, which closed today, was conducted via an accelerated “bookbuild” at a price of 20p per share to raise £5.24 million, before expenses.
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In addition to this, one of the company’s directors subscribed for 150,000 new ordinary shares on equivalent terms and conditions at the same issue price, raising a further £30,000 of gross proceeds for the company.
The placing and the subscription together will raise £5.27 million.
The retailer said it aims to “capitalise on the growth opportunity” with its third-party retail partners where currently on average only nine per cent of Sosandar’s total product range is available for sale.
From January to March, revenue at Sosandar rose to £3.94 million, reflecting a 63 per cent year-on-year increase, while gross profit margin reached 54 per cent.
Sosandar made an EBITDA loss of £1 million in the six months to September 30, compared with a £2.7 million in the first half of that financial year.
The business has a market capitalisation of £38 million.