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Walker Crips gets £6.6m boost
by Dylan Lobo on Sep 09, 2013 at 07:40
Walker Crips Group has raised £6.6 million to fund its growth strategy.
The private client stockbrokers has raised the capital through the conversion of a further £3.03 million of the £4 million (in nominal value) of convertible unsecured loan stock (Culs) issued by Liontrust as part of its acquisition of the firm's asset management business in 2012.
The Culs were converted into ordinary shares on 1p each in Liontrust on the basis of one share for each £1 in nominal value of Culs.
The 3,030,000 shares were subsequently issued and allotted to the company and then sold at a conversion price of 217.6p, raising the £6.6 million.
The transaction follows a similar one in March when Walker Crips converted £0.9 million of Culs in March.
Commenting on the news, Walker Crips chief executive Rodney Fitzgerald said: 'The opportunity to convert the vast majority of the remaining Culs and sell the shares at a price substantially above the conversion price has allowed the company to realise an overall gain on the disposal of WCAM (Walker Crips Asset Management which is substantially in excess of the headline value announced in April 2012 and to strengthen further the company's balance sheet and financial flexibility.
'The net proceeds of the sale of the Shares will be used to drive our continuing strategy of growth and expansion.'
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