Shares in Swallowfield plc (LON:SWL) soared after the personal care and beauty product group bought a company and unveiled plans to raise up to £8.6mln in a placing.
The stock rose 43.1p, or 26.4%, to 206.1p as Swallowfield said it had conditionally agreed to acquire The Brand Architekts.
The group also announced a conditional placing by N+1 Singer, acting as its nominated adviser and broker, to raise £8.6mln before expenses.
It said it would use the proceeds of the placing, which was significantly oversubscribed with new and existing shareholders, and new debt to fund the acquisition.
Brand Architekts owns and manages a portfolio of mid-premium beauty and personal care brands sold in major UK high street retailers and through export
Swallowfield said current trading was in line with expectations, continuing the momentum of a strong first half.
Chief executive Chris How said: "Brand Architekts has built a very successful stable of brands that will complement our developing owned-brand business.”