UK warehousing company, Norish PLC, announced it has raised £5.1 million (US$7.75 million) through the selling of 11.4 million new shares priced at 45 pence per share to institutional and other investors. The company plans to use the raised funds to finance its cold storage business through increasing capacity at its existing sites, while also making an investment in added blast freezer capacity at its site in Wrexham, Wales. The company also plans to use funds from the sale to grow the scale of its commodity trading unit via investments in other traders and the pursuit of acquisitions, having already identified its first target.

 

After reaching these goals, Norish plans to use the remaining funds to finance the pursuit of opportunities in the dairy sectors of Ireland and Missouri in the U.S., and other possible investments in the downstream agricultural value chain.

 

The placing, which requires shareholder approval, represents approximately 40% of the enlarged company. The directors of the company have applied for 611,445 shares, increasing their stake in the company to 21%.