The directors have agreed to subscribe for £ 3.2million of new shares at the offer price of 20 pence.
McColl’s Retail Group PLC () raised gross proceeds of £ 30million with a sharply reduced placement to accelerate the rollout of its Morrisons Daily format store conversions.
As part of the partnership with Wm Morrisons Supermarkets PLC (), the convenience store specialist said it now aims to achieve 50 more conversions on top of the 300 initially planned, and complete the rollout one year ahead of schedule.
McColl’s confirmed on Friday that it had raised £ 27.3million after fees and continued to launch an open bid for an additional £ 5million, as announced late Thursday afternoon.
The fundraiser was carried out at a price of 20p, a level last seen in October, with stocks trading above 30p since March.
Managing Director Jonathan Miller said Thursday that the capital raising “represents a transformative opportunity to accelerate our strategy and capitalize on the growth opportunity that lies before us in food-driven convenience.”
With 25 new Morrisons Daily conversions in the first half of the year and a total of 56 stores currently operating under the format, he said the group was “thrilled with the progress”, with the format delivering “a strong return on investment, offering increase double-digit sales and rapid return on investment ”.
Deploying six stores a week, he said the group is on track to complete 100 by the end of the year.
McColl’s also has a partnership with Uber Eats which is said to have “made good progress” in 400 stores and with a trial run at Morrisons Daily stores.
The group reported a statutory pre-tax loss of £ 5.9million on revenue down 5.3% to £ 572.7million.