Engineering firm Redhall plans to raise £7.5m in a share placing following the settlement of its long running contract dispute with renewable energy giant Vivergo Fuels.
The Wakefield-based company intends to raise the funds through a placing of 19.2 million shares at a price of 39 pence per share, which it said will be used to recapitalise the company’s balance sheet and for general working capital.
It said the move, along with the restructuring of the business, would allow the company to capitalise on “significant opportunities in its key end markets.”
The company took a £7.7m hit from its dispute with Vivergo, which was settled last month.
The placing price represents a discount of around 7.1 per cent to the closing price of Redhall’s ordinary shares of 42 pence yesterday.