Ocado has raised £36m through a new share placing and secured new terms on its existing debt.
The online grocer said shareholders have agreed to raise the new equity consisting of 56m shares at a price of 64p a share - above the 60.55p closing price on Friday. The placing represents about 9.99% of the company’s existing share capital.
In a separate move, Ocado’s lenders - Barclays, HSBC and Lloyds - agreed to extend the maturity of the company’s existing £100m debt facility by 18 months to July 2015.
Ocado said the placing and re-negotiation of the existing debt would allow it to focus on growing the business.
“It gives us greater flexibility to invest in various marketing initiatives around the opening of CFC2 and significantly expand our non-food offering,” said Ocado CFO Duncan Tatton-Brown.
The company also updated the market on current trading performance. Sales for the 14 weeks to 11 November were up 11%, with sales growth accelerating as the quarter progressed.
It also said that the new distribution centre - or CFC - in Dordon, Warwickshire, was due to open in February.
News of the finance deals sent shares in Ocado surging over 20% to 73.4p in early trading Monday.