- SILK Laser Australia (SLA) completes $20 million placement to fund a $52 million acquisition
- The laser hair removal company recently announced it will acquire ASC Group to enter new markets and position itself as an industry leader
- The placement will issue about 4.7 million new shares to sophisticated and institutional investors at an issue price of $4.30 per share
- The placement is expected to settle on Wednesday June 23 and the shares will be allocated on the following day
- SILK ended the day a slight 1.55 per cent in the green to close at $4.60
SILK Laser Australia (SLA) has completed a $20 million fully underwritten placement.
The placement will issue about 4.7 million new shares to sophisticated and institutional investors at an issue price of $4.30 per share.
The issue price represents a 5.1 per cent discount to SLA’s last close price on June 17 and a 1.8 per cent discount to the five-day volume-weighted average price of its shares on June 17.
“We are pleased with the success of this equity raising. We are grateful to our existing shareholders, welcome our new shareholders and thank them all for their support, as we deliver on our growth strategy and solidify our market position in the non-surgical aesthetic industry,” CEO Martin Perelman said.
The laser hair removal company recently announced it will acquire Beauty Services (ASC Group) for $52 million. ASC Group offers non-surgical aesthetic products and services and operating 56 clinics across Australia and New Zealand.
The buy is significant for SILK as it will allow it to enter the Victoria, Brisbane and New Zealand markets and will position it as the second player in the Australian non-surgical aesthetic industry.
SILK will use all of the money from the placement to fund the acquisition as well as a $22.5 million debt facility and $7.5 million in existing cash.
The placement is expected to settle on Wednesday June 23 and the shares will be allocated on the following day.
SILK ended the day a slight 1.55 per cent in the green to close at $4.60.