Sprue Aegis seeks £1m in placing
Article Date: Aug 10 2002Ofex-traded plug-in smoke alarm specialist Sprue Aegis intends to raise between £330,000 and £1.04 million in a Durlacher-handled placing at 25p a share, writes Robert Tyerman.
The company aims to spend the proceeds – after estimated expenses of £42,000-63,000 – on working capital, marketing and the development of its chief product: mains-powered smoke alarm FireAngel PS-101. This is made in China under 'outsourcing' arrangements, and is winning increasing acceptance in the UK.
Sprue, which lost £344,115 in the nine months to March, on £1.3 million turnover, recently reached agreement with J Sainsbury, Britain's second-largest food retailer, for FireAngel to be sold in its 400-plus stores around the country. Earlier this year Homebase agreed to put the product 'on range' in all its UK stores. Meanhwile, in June Sprue won a Shell LiveWIRE business innovation award.
The placing, priced at a 20 per cent discount to the market, is going to institutions, business partners, and others. Floated last year at 34p, Sprue shares peaked at 61.5p, before retreating to their current low of 31.5p.
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