AIM-listed finance specialist to buy Tracx Finance for £5.25m & launch Commercial Finance Division
Companies: Time Finance plc
UK finance specialist 1pm has announced plans to raise up to £9.9m to help it fund the acquisition of Tracx Finance and establish its Commercial Finance Division. Shares in the AIM-listed firm fell 12% to 48p, just above the 45p placing price, on Thursday following the news.
The Bath-based company said it intended to make a placement of 22m shares at 45p each to raise nearly £10m. There is also an open offer of 6.8m shares that could raise £3.1m, too.
The proceeds of the fundraise will help the company satisfy the cash part of the Tracx deal with the remaining proceeds used to finance the initial consideration for a further possible acquisition, to establish a Commerical Finance Division, and to strengthen its balance sheet.
In addition to the placing, the firm said on Thursday that it had proposed the appointment of Edward Rimmer to the Board of 1pm as the Managing Director of its new Commercial Finance Division. Mr Rimmer said he was "relishing" the opportunity to build the division, which he believes will help to "significantly" expand the Group's business:
"...by pursuing a wider range of new customers with a more diversified suite of products and by maximising cross-selling opportunities across the Group's other two divisions."
CEO Ian Smith added that the raise represented a significant milestone in the development of the company, demonstrating the Group's strategic plan:
"...to continue to expand our offering to UK SMEs by adding adjacent financial products and services which are complementary to our existing Asset Finance and Business Loans portfolios and which also create significant cross-selling opportunities."
