Norman Broadbent to raise £2.3m on AIM share placing

Executive recruitment firm Norman Broadbent is to raise about £2.3m through a conditional share placing on AIM to invest in the company and repay loans.

The net equity of about £2.2m raised will be used to hire additional staff, repay secured loan notes with an interest of 12% per year which amounts to £350,000 and for general working capital.

About 24.2m new ordinary shares will be issued to raise £2.3m before expenses, at 9.5p per share and is subject to shareholder approval at the next board meeting on 19 September.

The company’s directors have voted in favour of the placing and their 308,285 ordinary shares represents about 1.77% of the company’s existing issued ordinary shares.

In addition, subscribers Downing LLP, Jon Moulton and Pierce Casey are also in favour of the placing and collectively hold about 11.7m ordinary shares, which is about 67.4% of the existing issued ordinary shares.

The directors of the company have bought 736,841 subscription shares for about £70,000 and a number of employees have also bought shares.

Shares in Norman Broadbent were down 13.16% to 8.25p at 1139 BST.