On 22 February 2017, Purplebricks Group plc (LON:PURP) announced details of the Placing to raise gross proceeds of up to GBP50 million through the issue of new ordinary shares of 1 pence each in the capital of the Company. The Bookbuild has closed and Purplebricks is pleased to announce that a total of 22,727,272 Placing Shares have been conditionally placed with certain existing and new institutional investors at a price of 220 pence per Placing Share raising approximately GBP50 million. The Placing was materially oversubscribed.
The net proceeds of the Placing are intended to be utilised to enable Purplebricks to launch its business in the United States, initially by establishing itself in a number of key states. Further details of the Company’s US strategy are set out in the Company’s announcement made on 22 February 2017 .
The Placing is conditional on, amongst other things, (i) the passing by the requisite majority of Shareholders of resolutions to grant authorities to Directors to allot further shares for cash on a non-pre-emptive basis; and (ii) admission of the Placing Shares to trading on AIM on or before 8.00 a.m. on 14 March 2017. A circular, together with a notice convening the General Meeting, will be sent to Shareholders today. It is expected that the General Meeting will be held on 13 March 2017 and that the Placing Shares will be issued shortly thereafter, subject to Admission. The circular to Shareholders will contain a unanimous recommendation from the Directors of the Company to vote in favour of the Resolutions.
Subject to the Resolutions being passed at the General Meeting, application will be made for the 22,727,272 Placing Shares to be admitted to trading on AIM with admission expected to take place on or before 8.00am on 14 March 2017. The Placing Shares will rank pari passu with the Company’s existing ordinary shares. The Placing Shares, when issued, will represent approximately 8.4 per cent of the Enlarged Share Capital.
