Fashion firm Mosaic Brands has announced an underwritten capital raising of $32 million, aiming to prop up the business’ balance sheet until trading restrictions are eased.
The offer, which will give the business a cash position of $88.1 million upon completion, will allow Mosaic to be “well funded” throughout the current period, based on conservative expectations of when its stores can re-open.
“As is the case across the majority of the retail sector, recent widespread lockdowns during the first two months of FY22 have disrupted group momentum,” the business’ board of directors said in a letter to shareholders.
“Almost all stores across our entire portfolio [are] experiencing restrictions or full lockdowns in some form during this period.”
The capital raising will be broken in two; made up of a $10 million strategic placement of notes to Danfin Pty Ltd, and a $22 million 1 for 4.39 entitlement offer of notes to eligible shareholders. These notes will have a three-year term to maturity.
The offer will open on Wednesday 15th September, and will close on Monday 27th.
The business also said it intends to exercise its option to finalise the purchase of marketplace Ezibuy in September 2021, and expects to be able to settle the balance by 30 June 2022.