Science in Sport (SiS) has announced a conditional firm placing and open offer of shares to raise up to £8.9 million, before costs, through the issue of up to 15,085,481 new ordinary shares at the offer price of 59 pence (£0.59) per share.
The offer of shares comes hot on the heels of SiS confirming that it will be the Official Sports Nutrition Supplier to Team Sky in 2016.
The offer price of 59 pence per share is equivalent to the company’s closing share price on 22 October 2015, being the last business day before this announcement.
SiS notes that it has achieved an oversubscribed firm placing of 13,380,911 ordinary shares at the offer price of 59 pence per ordinary share, to raise £7.9 million.
As a result the company is putting an open offer to the stock market for an aggregate of 1,704,570 offer shares. This is being done on the basis of 1 new ordinary share for every 15 existing ordinary shares, at 59 pence each to raise up to £1.0 million.
Thus, the firm placing and open offer, which are subject to shareholder approval, will raise gross proceeds of up to £8.9m.
Stephen Moon, Science in Sport’s CEO, said “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. 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.”
A release from SiS notes that the net proceeds of the firm placing and open offer will be used to further accelerate the company’s revenue growth primarily through international expansion and investment in e-commerce.
International growth plans include the transition to direct marketing through all sales channels in Australia, ‘the world’s second largest sports nutrition market’, and market entry in the US.
The firm placing and open offer are conditional, inter alia, upon Shareholders approving the Resolutions at a General Meeting. A circular containing a Notice of General Meeting will be sent to Shareholders today.
The core SiS product ranges include: SiS GO, comprising energy powders, isotonic gels, energy bars and hydration tablets; and SiS REGO, including protein-based recovery powders and bars – with SiS Whey Protein added to the mix earlier this year.
SiS products are sold in a range of retail channels, including specialist sport retailers, major grocers, high street retailers and e-commerce websites.
SiS is the official sports nutrition supplier to professional cycling teams Team Sky (2016), Team Wiggins, JLT Condor, Madison Genesis, Team Katusha and Trek Factory Racing. SiS is also the official supplier of sports drinks and sports nutrition to the GB Rowing Team. In addition, Olympians Sir Chris Hoy MBE, Mark Cavendish and Helen Jenkins are Elite Sports Consultants and brand ambassadors.
SiS was founded in 1992 and is headquartered in Hatton Garden, London. Its manufacturing facility is in Nelson, Lancashire.
SiS shares are traded on the AIM market of the London Stock Exchange under the ticker symbol SIS.
