Sosandar raises £7m from share placement

Online women's fashion brand Sosandar has raised £7m by virtue of a conditional institutional placing of new ordinary shares at a price of 15p each - a 3.4% premium to its closing price on Wednesday.

Sosandar's placing was comprised of a firm placing of 22.66m new ordinary shares and a further placing of 23.99m new shares, conditional to shareholder approval.

The placing, which was significantly oversubscribed by new and existing shareholders, was arranged by the AIM-listed company's broker, Shore Capital.

Sosandar intends to use the proceeds of the fundraiser to enable it to pursue new opportunities, assist in the expansion of new supplier relationships, reduce the risk of having to rely on supplier credit to fund future growth and further widen its product range.

Co-chief executives Ali Hall and Julie Lavington said: "Our strong financial performance and high level of repeat orders demonstrates the demand for our products and loyalty of our existing customer base.

"We have considerable momentum in the business which we are excited to build on going forward. Several opportunities are in the pipeline which will further improve the Sosandar shopping experience and build awareness of the brand to new customers."

As of 0950 BST, Sosandar shares had shot up 11.55% to 16.18p.