Science in Sport (SIS) has raised almost £9m as part of plans to accelerate its international expansion and investment in e-commerce.
The sports nutrition business, which counts Sir Chris Hoy as a brand ambassador and is an official sports drink supplier to a number of professional cycling teams, secured the money by issuing just more than 15 million new shares at 59p each. The £8.9m placing is subject to shareholder approval.
Science in Sport’s international growth plans include the move to direct marketing through all its sales channels in Australia and breaking in to the US market.
“We are delighted by the strong level of support from new and existing investors in this significantly oversubscribed firm placing, which has been priced without a discount to yesterday’s close [shares closed 59p on 22 October],” CEO Stephen Moon said.
“Through the open offer, we are giving other shareholders the opportunity to participate in this fundraising, which is focused on further accelerating the company’s revenue growth.
“The net proceeds of the fundraising will allow us to take advantage of the compelling growth opportunities available to us, particularly in the further international expansion of the SiS brand and through further developing our e-commerce platform.”
Shares in the group jumped 3.4% in today’s trading to finish at 61p - still well below year-to-date high of 77p back in January.
In its most recent half year – six months to 30 June – the business increased revenues 19% to £5.2m thanks to strong growth in online channels and international markets.