Advice market consolidator AFH has issued new shares and sold them to an unnamed institutional investor, raising about £239,000.
The information was contained in a stock exchange announcement published on February 4.
The statement said the sale was done at 390 pence per share.
The company’s share price has risen slightly since the announcement, and this morning (February 5), the shares were trading at 391p.
The name of the new investor was not disclosed as they own less than 3 per cent of the company’s shares, so are not required to do so.
AFH is listed on the Alternative Stock Market (AIM) and since joining that market in 2014, has acquired 50 advice firms.
In January it stated it had a cash pot of £17.25m to spend on buying firms.
This was after in September 2019, it announced that it would stop buying advice firms for a period of time due to the prevailing political uncertainty.
Since that announcement, the company’s share price has risen from 267p to 391p.
The company stated at that time it would not raise extra capital from existing shareholders. The company had previously issued convertible loan stock in 2019 to raise cash for acquisitions.
It had a net cash balance of £11.9m at the end of October 2019.
AFH has a target to achieve assets under management of £10bn within five years. The assets under management stood at £6bn at the end of October 2019.
david.thorpe@ft.com
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