AFH Financial has placed £10 million worth of shares to help fund acquisitions.
The shares have been put on the market at 175p each. As part of the placing AFH chief executive Alan Hudson (pictured) has agreed to sell 1 million of his shares worth £1.75 million.
According to a stock exchange announcement, the consolidator has at least four deals it is in the process of completing, and other possible targets have been identified.
The announcement said the proceeds of the placing would be used to ‘execute the company’s acquisition pipeline and for general corporate purposes’.
It added: ‘The board believes that the opportunity exists to acquire appropriately priced businesses and that the net proceeds of the placing will provide the company with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes.
‘The near-term pipeline is particularly attractive, with four potential deals currently at various stages of the due diligence and engagement process. In addition to these four potential deals, the company continues to assess other potential acquisitions to further accelerate its growth.’
Since 31 October AFH has made five acquisitions for a combined £2 million.
In a brief trading update accompanying news of the placement, AFH said its core business continued to perform in line with expectations, with strong recurring revenue and further additions to funds under management.
As at 1 March, AFH had a cash balance of £4.1 million.