News blog
Loanmakers
- BY: Andrew Hore |
- POSTED: 16/09/2008 |
Loan broker Loanmakers is raising up to £1.7m net via an open offer.
The 24-for-one open offer will be at 0.25p a share and raise £1.86m gross. The share price slumped 0.15p to 0.48p, which values the current share capital at £150,000.
The last acceptance date for the open offer is 10 October.
Loanmakers used to be known as Debtmatters before it decided to withdraw from the IVA market. The company needs the cash to reduce debt and provide working capital for the business.
Loanmakers has been hit by the withdrawal of First Plus, the secured lending subsidiary of Barclays, from the lending market. Loanmakers is looking for new sources of loans.
Loanmakers has been completing between 300 and 400 loans each month but this is likely to fall to 200 each month. The company should still breakeven after cost savings have been completed.
Chief executive Ges Ratcliffe will underwrite the open offer. In June 2006, Ratcliffe sold 6m shares at 330p a share, raising £19.8m, so he should have enough cash to finance this open offer.
Ratcliffe currently owns 32.4% of the company but this could increase to 97% if no one else takes up the open offer. If this happens then Loanmakers may decide to leave Aim because of the lack of free float.
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