Velocity Composites announced its intention to raise up to £6.7 million through a combination of share placing, subscription, and retail offers. The aerospace-materials supplier plans to allocate the funds to bolster its workforce, invest in capital expenditure, and enhance working capital for expansion purposes.
To initiate this capital raise, Velocity has issued 3 million new ordinary shares at a price of 40 pence each, representing a 13% discount to the closing price of 46.0 pence on Tuesday.
In addition to the firm placing and subscription, Velocity intends to issue 12.5 million shares via an enterprise investment scheme and venture capital trust placing, offering tax advantages to the investors.
Furthermore, shareholders have been given the opportunity to purchase discounted shares through a retail offer, potentially generating up to £500,000 in funds.
Chairman Andy Beaden expressed his satisfaction with the positive response received from investors and their support for the company's growth plans in the aerospace composites market. With this infusion of capital, Velocity Composites aims to accelerate its expansion and recruit additional skilled staff.