Northbridge to raise more than £5m in placing and open offer

Northbridge Industrial Services was looking to shore up its funds on Monday, announcing a proposed placing of ordinary shares to raise between £4m and £4.5m.

The AIM-traded company said that, in addition, a further £1.1m was expected to be raised through an underwritten open offer to existing shareholders on the basis of two new ordinary shares for every 25 existing ordinary shares held by shareholders.

Northbridge’s directors have indicated their intention to participate in the placing and open offer to a total of £1.1m. The board also claimed strong support for the placement from institutional investors.

The placing will consist of 1.8 million ordinary shares being placed firm, and up to a further 4.2 million ordinary shares being placed subject to shareholder approval being obtained at a general meeting.

Settlement and admission to trading on AIM of the first placing shares is expected to occur on 20 April, with second placing shares admitted on 6 May.