The Conygar Investment Company PLC
(“Conygar” or the “Company”)
Proposed Equity Raise of c.£10 million
Conygar announces its intention to conduct a placing of c.6.7 million new Ordinary Shares (“Placing Shares”) at a price of 150 pence per share (the “Placing Price” and the “Placing”), raising gross proceeds of c.£10 million.
Highlights
Proposed issue of c.6.7 million Placing Shares under the Placing at 150 pence per Placing Share, with the placing of any Placing Shares in excess of 5 million Placing Shares being conditional on certain resolutions being passed at the Company's Annual General Meeting to be held at 4.00 p.m. on 20 December 2021 (the “2021 AGM”).
The Placing Price of 150 pence per Placing Share represents:
- a discount of 7.7 per cent. to the Company's closing share price of 162.5 pence per Ordinary Share on 16 December 2021 (being the last business day prior to this announcement); and
- a discount of 31.0 per cent. to the Company's net asset value per Ordinary Share of 217.4 pence per Ordinary Share as at 30 September 2021.
The Company has a number of potential uses for the proceeds from the Issue, all of which will assist with progressing The Island Quarter site in Nottingham. These include funding the completion of the construction for the first phase of the scheme, bringing a new electricity substation to the site, funding the equity component of the student accommodation scheme and potentially progressing the design and planning for an office scheme. More details on these are set out below.
It is the intention of the Directors to subscribe for 704,000 Placing Shares at the Placing Price in the Placing.
The Placing will be conducted through an accelerated bookbuild, which will be launched immediately following release of this announcement (the “Bookbuild”). Liberum Capital Limited (“Liberum”) is acting as sole bookrunner in connection with the Placing (the “Bookrunner”).
The Placing Shares will represent approximately 12.8 per cent. of the Company's existing issued share capital, assuming 6.7 million Placing Shares are issued in total.
Admission of the Placing Shares to trading on AIM is expected to be on or around 22 December 2021.
Robert Ware, CEO of Conygar, commented on the Placing:
“The Placing we are announcing today is to fund part of the next phase of the exciting 36 acre Island Quarter site in Nottingham. There are a number of potential uses for the proceeds, including bringing a new electricity substation to the site, funding the equity component of the student accommodation scheme and potentially progressing the design and planning for an office scheme. Significant progress has already been made on The Island Quarter, with planning permission granted for over two million square feet to include new homes, grade A office space, a creative market, a lifestyle hotel, retail units, student accommodation and associated public realm.”