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eve Sleep shares dive on weaker than expected fundraising

The beds retailer has been forced to backtrack on promises of selling for “significantly higher than the prevailing share price”, with investors buying at a 30% discount at 10p a share
eve Sleep shares dive on weaker than expected fundraising
eve Sleep’s shares were 10.7% down at 12.61p in late afternoon trade

eve Sleep PLC (LON:EVE) shares crashed on Thursday after the online mattress company said that investors were buying shares at a discounted price during its latest round of fundraising.

The beds group said it had secured subscribers for £9.9mln worth of new shares, significantly lower than the previously announced £15mln equity issue plan.

READ: eve Sleep lowers 2019 guidance but shares rise on plans to raise £15mln at ‘significant premium’

The e-commerce retailer said fund manager Neil Woodford had promised to invest £8mln and the company’s chairman Paul Pindar would add in £1mln.

The company has been forced to backtrack on promises of selling for “significantly higher than the prevailing share price”, with investors buying at a 30% discount at 10p a share.

eve Sleep’s shares were 10.7% down at 12.61p in late afternoon trade.

However, the group also said that trading remained strong which will boost annual revenue.

The company said trading has continued to be strong and that it had experienced a very good Black Friday period. Unaudited revenues for the 11 months to 30November 2018 were approximately £33mln the company said.

As such, eve Sleep said it expects to deliver revenues above market expectations for the year end 31 December 2018.

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