The group said 125,000,000 new ordinary shares, together with attached warrants, have been placed at a price of 4p each with new institutional, other and existing investors.
In a statement confirming the close of the bookbuild, Peter Fowler, Westminster’s chief executive officer, commented: “We have spent a number of years investing in our business, building our global presence and developing an impressive pipeline of large-scale opportunities, each of which, if secured, would lead to multi-million GBP step changes in growth. Accordingly, the Board and I believe we are now at an inflection point in our growth trajectory.”
Fowler added: “This investment will assist us in delivering on this substantial growth potential and put the Company in a stronger position for the next stage of its development by providing working capital to support the growth and delivery of the pipeline of near-term potential major projects, together with recently secured contracts, whilst also strengthening its balance sheet by the removal of debt, saving some GBP0.3 million in annual interest and fees.
“It is encouraging to see a number of new and institutional investors supporting this placing and being supportive of our longer-term growth strategy, particularly as the placing was oversubscribed.”
The leading supplier of managed services and technology-based security solutions worldwide noted that the placing shares represent approximately 44% of the group’s enlarged share capital.
The placing price represents a discount of approximately 36.5% to Westminster’s closing middle market price of 6.3p per share on December 2, 2020. In morning trade on Thursday, Westminster shares were down 32.5% at 4.25p.
Subscribers in the placing were also granted warrants to subscribe for new ordinary shares on the basis of 1 warrant for each 5 placing shares basis. The warrants will be exercisable at 7p per new ordinary share for a period of 24 months from closing.
Westminister said that up to GBP2.6mln of the gross proceeds of the placing will be used to fully redeem the company’s outstanding Convertible Loan Notes and Convertible Unsecured Loan Stock, and to repay the outstanding balance on its Mezzanine Loan Facility.
It added that the balance of the gross proceeds will be used as working capital to support the initial deployment of long-term multi-million-pound annual recurring revenue prospects in advanced stages of negotiation, as well as the company’s recently secured Palace of Westminster contract, and to pay associated expenses.
The accelerated bookbuild process was conducted by Arden Partners, now the company’s sole broker.
In a separate announcement on Thursday, Westminister confirmed it had appointed Arden as sole broker and Strand Hanson as its financial and nominated adviser, in each case with immediate effect.
— Adds details of bookbuild close, updates share price —