The fundraise comprises £14mln in new equity issued at just 20p per share plus a £10mln bridging loan
() the struggling construction group has confirmed it is raising £24mln through a deeply discounted share issue and loans.
Svella, a group led by former Stobart group bosses Andrew Tinkler and Ben Whawell, is behind the fundraise that comprises £14mln in new equity issued at just 20p per share plus a £10mln bridging loan convertible into shares at the same price.
Existing shareholders can participate through an open offer that will raise up to a further £5mln.
Tinkler left Stobart acrimoniously in 2017, sparking a court case against his former employer that has now changed its name to Esken, and according to reports has been looking for turnround opportunities.
NMCN should fit the bill. The contract was formerly known as North Midlands Construction and has been hit by the impact of Covid-19 and loss-making contracts with its share price falling from 760p in 2019 to 175p, down 11% today.