Lok'n Store raises £20.5m to support expansion plans
UK self-storage chain Lok'n Store Group successfully completed a fundraising initiative on Friday, generating total gross proceeds of £20.5m.
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The AIM-traded firm said the fundraising would see the issue of 2,679,739 new shares at a price of 765p each, representing roughly 8.9% of its existing issued share capital.
It announced the fundraising initiative, which consisted of a placing and a REX retail offer, on Thursday, and received a positive response.
The generated capital would be used to support the company's ongoing expansion plans and strengthen its position in the competitive self-storage market.
“This funding will support the growth of the company in the structurally under-supplied UK self-storage market,” said chair Andrew Jacobs.
“Our pipeline will, when fully operational, add 37.7% to available space, which, as those new stores fill up, will generate more cash flow for future growth investment and increased distributions to shareholders.”
At 1107 BST, shares in Lok’n Store Group were down 8.61% at 775p.
Reporting by Josh White for Sharecast.com.