JJB Sports has revealed the details of its £100m equity raising and new banking terms.
JJB is proposing to raise £100m through a firm placing and an open offer at an issue price of 25p per ordinary share, a discount of 23.7% to last Friday’s closing price of 32.75p.
JJB executive chairman Sir David Jones said: “This capital raising represents a new beginning for JJB Sports. This business has been through a great deal but has survived thanks to the strength of its consumer proposition and the dedication of its staff.
“This fresh capital, together with the amended working capital facility from the Bank of Scotland, will provide the management team with the resources and flexibility it needs to implement the redefined strategy that will revitalise JJB and establish it as the destination for everyone who wants to participate in sport.”
He added that the funds would pay drawn amounts under JJB’s amended working capital facility, increase the retailer’s stock levels, refurbish existing stores and enable it to search for new stores in key retail areas.
Jones added: “On behalf of the board I am delighted to put these plans in front of shareholders in the strong belief it will forge our path into the future.”