Walker Morris has advised Altium Capital, as nominated adviser, and WH Ireland, as broker, on the placing and open offer by the manufacturing and specialist services group, Redhall Group plc, to raise £5.8 million.
The Placing Shares are being placed with new and existing institutional and other shareholders by WH Ireland at a price of 5 pence per share.
In addition, Alphagen Capital (formerly Henderson Alternative Investment Advisor), HSBC Bank plc and the Company have entered into an agreement to capitalise £3 million of debt, at 5 pence per share.
Richard Naish, Shubhu Patil and Ben Proctor from the Walker Morris Corporate Group advised Altium Capital and WH Ireland.
The placing and open offer and conversion of debt follows the announcement of the Company’s strategy in December 2014 which stated its intention to turnaround the performance of the Group, create a lower risk, higher margin, multi-disciplinary manufacturing-based organisation, and deliver a substantial improvement in profitability, earnings per share and shareholder value.
The key tenet of the strategy is a focus on high margin manufacturing, and specialist services activities, with particular emphasis on the nuclear, oil & gas and specialist infrastructure markets.
Redhall’s Chief Executive, Phil Brierley, said:
"We have made significant progress in the past year in transforming Redhall into a company focused on multi-disciplinary manufacturing and specialist services, which offer higher margins and lower risks. The proposals announced today, through restructuring the balance sheet and providing additional funding, will position Redhall to take advantage of the significant growth opportunities in our marketplace."
Richard Naish, Walker Morris corporate partner said:
“The Company has already successfully completed the first stage of its turnaround.  The placing and open offer together with the conversion of debt will strengthen the Company's balance sheet and provide additional funding to support the growth of Redhall’s existing businesses.”