Woodbois raises £1m from new and existing shareholders

4th Oct 2024 16:14

(Sharecast News) - Woodbois announced on Friday that it has raised £1m through a subscription from new and existing shareholders.

The AIM-traded firm said the proceeds would be used to strengthen its balance sheet and increase working capital, which would support growth initiatives, particularly in accelerating exports of its products to 50 containers a month.

It said the increase in working capital was also expected to enhance operational efficiencies, improve cost management, and reduce its reliance on debt, providing greater financial flexibility to seize market opportunities.

The raised funds would also assist in the registration process for Woodbois' carbon credits trading business.

Woodbois said the subscription involved the issue of 357,142,857 new shares at a price of 0.28p each, with Axis Capital Markets subscribing on behalf of its clients.

The new shares represented 9.05% of the company's issued voting share capital prior to the fundraising.

Application for admission of the new shares to AIM was expected in two stages, with 90 million shares admitted on 10 October and 267 million on 18 October.

Following the admissions, the company's total issued share capital would consist of 4.3 billion voting ordinary shares.

"The additional capital will enable us to enhance our export capabilities and invest in innovative initiatives like our carbon credits trading business," said chief executive officer Guido Theuns.

"We are grateful for the confidence shown by our shareholders and remain committed to delivering sustainable growth and value."

At 1551 BST, shares in Woodbois were down 18.52% at 0.33p.

Reporting by Josh White for Sharecast.com.