AFH Financial, the advisory consolidator that is listed on the London Stock Exchange’s Alternative Investment Market, has launched another fundraising initiative by issuing a fresh round of up to £3m unsecured loan notes.
In a trading update last month AFH said while cash balances were in excess of £5m, it is considering the use of fixed interest instruments to introduce a modest level of gearing into the balance sheet.
In June AFH raised almost £3m prior to its first day of trading on the Alternative Investment Market.
An information memorandum, published today (1 December), revealed the new notes will pay a coupon of 7.5 per cent per annum, with a redemption date of 12 December 2018.
For every £1,000 of notes subscribed, the holder will receive warrants to subscribe on redemption of the notes for 200 new ordinary shares in the company, at a price of £2.00 per new ordinary share.
Preliminary applications for the notes need to be received by 5pm 12 December and it is anticipated that the notes will be issued shortly thereafter. Further applications may be accepted at the sole discretion of the board.
Since AFH’s admission to Aim in June, the number and size of potential acquisition targets has grown, the wealth manager’s board stated.
It has completed seven acquisitions, financed by positive trading cash-flow, over the last 12 months and funds under management recently exceed £900m.
peter.walker@ft.com
