Chill Brands Group PLC (LSE:CHLL, OTCQX:CHBRF) said it has conditionally raised £3.5mln before expenses from investors including Stagecoach co-founder Dame Ann Gloag.
The funds will cover working capital for the company to progress its operations during this financial year, said new chief executive Callum Sommerton in a statement late on Tuesday.
The first part of the fundraising is a £583,334 subscription, with 29,166,699 new ordinary shares to be issued at a price of 2p apiece, with the second part being an issue of £2.92mln of loan notes convertible into ordinary shares at the same price.
Broker Optiva Securities arranged the funding with new and existing shareholders, which includes the Schrader family in the US, with all subscribers taking a pro-rata number of new shares and loan notes.
“It is the belief of the board of directors that this fundraising activity is in the best interests of the company and all Chill Brands shareholders,” said Sommerton.
“Recognising and learning from the mistakes of the past, we look forward to a future in which Chill Brands markets its products to a wider audience, executes a direct-to-retail sales plan, and further commercialises its landmark domain name.
“The funding secured from this round will enable us to pursue those goals and I encourage all shareholders to vote in favour of the resolutions proposed at our upcoming general meeting.”
With the meeting to vote on the fundraising to be held on 12 May in London, directors have unanimously recommended shareholders to vote in favour of the resolutions at the meeting and have given irrevocable undertakings to vote in favour in respect of their shareholdings, which represent a total of 17.71% of the company's shares.