Shares in RCG Corp (RCG) soared to an all-time high yesterday after the footwear retailer raised cash to help pay for its takeover of Accent Group for close to $200 million.
The company announced the completion of a fully underwritten placement to raise $25 million at 70c a share.
Trading in shares of the company was halted on Thursday and Friday; but resumed yesterday.
They jumped strongly and surged 44.4% to close at $1.04, handing out profits all over the place.
RCG 1Y – RCG shares hit record high
A total of approximately 35.7 million new shares, representing 13.3% of RCG’s existing issued capital, will be issued under the Placement.
RCG CEO Hilton Brett said in yesterday’s statement, “We are delighted with the strong level of support for the offer shown by both RCG’s existing shareholders and new investors. This is an important vote of confidence, both in the compelling acquisition of Accent Group and RCG’s broader growth strategy.”
Settlement of the Placement is expected to occur on 27 March 2015, with the placement shares being allotted and quoted on ASX on 30 March 2015.
As previously announced, following the completion of the transaction, RCG will offer eligible shareholders the opportunity to acquire up to $15,000 of additional RCG shares at a price of no more than $0.70 per share in a non‐underwritten share purchase plan.
The share purchase plan will be capped at $10 million, subject to RCG’s discretion to accept oversubscriptions and scale back applications.
