Chamberlin raises £1.8m to strengthen balance sheet

Castings and engineering company Chamberlin has conditionally raised £1.8m before expenses, it announced on Wednesday, to strengthen its balance sheet and continue to execute its forward strategy.

The AIM-traded firm said the funds were raised through the placing of 30,133,333 new shares at a price of 5p each with institutional and other investors, and a subscription for 5,866,667 new shares at the same price by executive director Trevor Brown.

It noted that the placing price represented a discount of 31% to the closing mid-market price of 7.25p per share on 1 February.

The fundraising remained conditional on shareholders approving resolutions at an upcoming general meeting, that would grant directors the authority to allot the new shares, and the power to disapply statutory pre-emption rights over that allotment.

“As announced on 16 September, the company commenced a review of the use of its substantial property assets with the objective of strengthening the balance sheet and improving operational and investment returns from group resources,” the board said in its statement.

“This review continues, and the board remains focused on ensuring that the Group has the necessary resources to deliver on its growth strategy.

“The additional funds from the placing and subscription are expected to enable the company to execute its strategy, and will strengthen the company's balance sheet, giving it more flexibility to manage and achieve its optimum financial position.”

At 1227 GMT, shares in Chamberlin were down 27.72% at 5.24p.