Sosandar set to raise £4m for future growth following 'record' Q3 sales
British womenswear brand Sosandar has proposed placing over 18,000,000 new ordinary shares in the capital of the company, raising at least £4 million for future growth.
The placing will be conducted by issuing 18,181,818 new ordinary shares at the price of 22 pence per share. This will raise a minimum gross profit of approximately £4 million before expenses.
In addition, the company intends to carry out a separate offer of up to 2,272,727 new ordinary shares to raise further proceeds of up to £0.5 million to provide existing retail shareholders in the UK with an opportunity to participate in Sosandar's fundraising plans.
An announcement is set to follow regarding the retail offer and its terms. However, the placing is not conditional upon the retail offer.
The company is seeking to raise the additional funding to capitalise on future opportunities presented and accelerate its future growth across all channels.
On 10 January 2023, Sosandar reported a 30% increase in revenue to £11.6 million for the three months ending 31 December 2022, with "strong" revenue growth seen across all sales channels.
The strong performance is a testament to its "agility, underpinned by a unique quality product offering, highly effective marketing strategy and increasing brand awareness" across its target market, according to the company.
The company later announced a partnership with supermarket chain Sainsbury's to stock the brand across its online platform and a select number of retail locations. The partnership, which includes the company's first in-store presence, allows Sosandar to become a true omnichannel retailer.