Aim adviser Alexander David Securities Group is raising £365,000 at 0.275p a share.
Alexander David will use the cash to pay off accrued adviser costs of £250,000 – mainly related to the failed acquisition of Hoodless Brennan. The rest will be used for working capital. The broker says that trading is improving.
Directors are taking up nearly one-quarter of the placing shares. Trevor Coote is buying 11.59m shares. Tony Cowling and Angus Rose each subscribed for 10m shares. Chief executive David Scott is buying 7.27m shares, although his stake in the company will still be diluted from 19.2% to 16.3%.
Aim-quoted Jarvis Securities, where Alexander David director Andrew Grant is boss, is buying enough shares to maintain its stake at 2.8%.
The share price has fallen below the placing price. At 0.21p a share, Alexander David is valued at £1.07m.
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