Workforce supplier Hercules Site Services PLC (AIM:HERC) has completed an £8 million equity round that brought two notable investors onto the shareholder register.
Martin Tedham, owner of specialist pharmaceutical packaging supplier Wadsell, and Ged Mason, boss of recruitment firm Morson Group, subscribed to the round, with the former netting a position on the board.
The equity round was notable for its pricing- at 49.5p per share, it was delivered at a zero discount to Thursday’s closing price.
Hercules’ chief executive Brusk Korkmaz stated: "We are delighted to have raised these funds from two successful entrepreneurs and institutional investors which will be used to further grow Hercules through both organic expansion and acquisitions, with the aim of driving profitability in the long run.
"We believe the improving macroeconomic environment means that the infrastructure and construction sector will go from strength to strength in the short to medium term, while the long-term outlook for the sector continues to be positive.
“The company is now well positioned to take full advantage of these encouraging tailwinds.”
Korkmaz also announced that he has pared back his stake in Hercules from 56.5% to 45% via a secondary sale, which the board believes “represents a step towards a more appropriate level of shareholding for the CEO and founder of a public company”.
“In line with Brusk Korkmaz's ongoing commitment to the long-term future of Hercules, he continues to be well-incentivised to drive future growth as his interests remain closely aligned with shareholders of the company,” the company added.
The secondary sale was executed via Hercules Real Estate Limited, a company controlled by Korkmaz and his wife.