Monday, January 29, 2018

News: Fishing Republic nets £1.3m from share placing

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Rotherham-based Fishing Republic, one of the largest fishing tackle retailers in the UK, has raised £1.3m through a new share placing.

The Eastwood company floated on the AIM stock exchange in 2015, raising millions to help carry out its expansion plans. A new share placing during 2016 landed a further £3.75m.

Now the firm has announced that new and existing shareholders, including directors, have taken up a share placing in which 13,000,000 new ordinary shares of 1p each were taken at a price of 10p per placing share.

Fishing Republic said that the net proceeds of will be used to further advance and develop the company's e-commerce operations, logistics and merchandising activities following the recent review of operations. It will also be used to provide additional working capital to accelerate the rate of growth of online sales.

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Following a recent period which saw "a significant deterioration in trading," Chris Griffin was brought in to as act as a CEO on a temporary basis to conduct a strategic review. Steve Gross, the company founder, stepped down as CEO and remains on the board as an executive director.

Recruitment is underway for a permanent CEO and chairman, James Newman, has assumed the role of executive chairman temporarily to continue to oversee the operational changes.

The placing saw Newman and Iain McDonald, a previous investor and non-executive director subscribe for 50,000 and 600,000 Placing Shares respectively. Miton UK MicroCap Trust plc has also upped its stake in Fishing Republic to over ten per cent.

In addition, the company issued 1,000,000 Ordinary Shares at the Placing price as part of the payment for consultancy services provided in relation to the recent review of the business and operations.

James Newman, chairman of Fishing Republic, said: "I am delighted to announce our successful fundraising of £1.3m before expenses, which has been supported by both existing investors, including Miton, and Directors, and a number of new shareholders.

"The proceeds of this Placing will be used to implement our operational improvement plan under the new management team and provide us with the working capital needed to expand our online sales offering and distribution facilities."

Shares in Fishing Republic had been trading at around 40p for most of 2017. That price has now dropped to around 10p today.

Fishing Republic website

Images: Fishing Republic

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