Nuclear contractor and engineer Redhall Group plc (LON:RHL) is to raise £9.75mln through a premium priced placing to give it enough working capital to meet a surge in orders.
A placing at 10p per share will raise the new funds and coincides with a conversion of £3.75mln of debt into equity. The price is a near 11% above the closing market price yesterday.
Redhall said it seeing increasing nuclear work across defence, decommissioning and new build markets, some of which have come through earlier than expected and is needs additional working capital to support the workload.
Phil Brierley, chief executive, said: “New build orders in the nuclear sector are coming through faster than anticipated, which is very encouraging for Redhall.
“The Placing and the Debt Conversion announced today will help us to deliver these orders effectively and to capitalise on other opportunities available to the Group as it implements its growth strategy."
Shares rose 7% to 9.6p.