European Wealth Group Limited (LON:EWG) said major shareholder Astoria Investments has subscribed for 7.92mln shares at 16.5p each, raising £1.31mln for the company.
The subscription lifts Astoria’s stake from 13.71% to around 18%.
European Wealth noted that the subscription price is the same price at which the syndicated debt facilities were converted and at which certain directors and other employees of EWG subscribed for new shares, both in May 2018.
"Astoria's decision to increase its stake in the company demonstrates its confidence in the group's strategy and further cement our relationship with a supportive institutional shareholder,” said Buzz West, the chairman of European Wealth Group.
“The group is debt free and well-positioned to take advantage of the long-term growth opportunities we see in the global wealth management and financial planning market. We are ambitious to grow both organically and dynamically by acquisition in the US and Europe. The acquisitions will be funded through a combination of both cash and shares,” West added.
“The proceeds raised today, which we expect will be the last placement that the company makes at 16.5 pence strengthens our position to capitalise on these opportunities,” the chairman concluded.
Shares in European Wealth closed at 16.5p last night.