Ethical etailer Adili is seeking up to £1 million in additional investment to help develop its own label and improve short- to medium-term cash flow.
Adili chief executive Adam Smith, who founded the etailer in September 2006, said the company had received a positive response from potential investors.
“We’re over halfway through raising the funds with existing shareholders, but we’re also in talks with new shareholders,” said Smith.
Adili plans to issue more shares at 5.5p each to Hawk Investment Holdings, which is the company’s largest shareholder with 27.36% of the issued share capital. However, Hawk Investments Holdings said it hoped to waiver any obligation to make a full bid for Adili under the takeover and mergers rules subject to approval by the Takeover and Mergers panel and shareholder approval.
Smith expects to have secured the additional funds by the third week in September. “We are running a business with higher overheads, especially with the launch of own label,” said Smith. “We also didn’t have all the funds expected from the floatation earlier this year.”
In a trading update this week, Adili said sales were up by more than 100% in the three months to the end of July. However, Smith admitted that the last year had been hard.