Placing to raise £0.9 million

RNS Number : 0419W

Coral Products PLC

14 August 2015

 

14 August 2015

CORAL PRODUCTS PLC

("Coral" or the "Company")

Placing to raise £0.9 million

Coral Products plc, a specialist in the design, manufacture and supply of injection moulded plastic products based in Haydock, Merseyside, is pleased to announce that it has raised £0.9 million before expenses through a placing of 6,003,330 new ordinary shares of 1 penny each in the capital of the Company (the "Placing Shares") at a price of 15 pence per Placing Share (the "Placing"). The Placing was conducted by Daniel Stewart & Company plc and was oversubscribed.

Earlier this year, the Company adopted a five year plan aimed at substantially increasing group revenue and profitability from its specialist plastic products manufacturing and distribution activities. In June 2015, Coral acquired certain plant and machinery from Neiman Packaging Limited ("Neiman") which enhances its manufacturing capabilities with two new manufacturing processes, injection blow moulding and extrusion blow moulding. Some of the proceeds of the Placing will be used to expedite the integration of the machinery acquired from Neiman into the Company's Haydock facility and to develop the production of packaging products for new customers, principally in the health, hygiene and personal care markets. The remainder of the Placing proceeds will be used for a capital expenditure programme aimed at reducing costs and for general working capital purposes.

Application will be made to the London Stock Exchange to admit the Placing Shares to trading on AIM and admission is expected to occur on 27 August 2015. The Placing Shares will rank pari passu with the Company's existing ordinary shares.

Following the issue of the Placing Shares, the enlarged issued share capital of the Company will comprise 65,614,865 ordinary shares of 1 penny each. 

Chairman Joe Grimmond commented: "We are delighted to have received further institutional support as we expand both our manufacturing capabilities and customer base. We are confident of making good progress in our current financial year."

Enquiries

Coral Products plc Joe Grimmond, Executive Chairman	Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Tony Rawlinson / Avi Robinson	Tel: [phone]
Broker Daniel Stewart & Company plc David Lawman / David Coffman	Tel: [phone]
PR Capital Markets Consultants Limited Richard Pearson	Tel: [phone]

 

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