Women's fashion brand Sosandar to float on AIM in reverse takeover

 
Alys Key
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Source: Sosandar.com

Women's fashion brand Sosandar is to be acquired by a former gold company and the enlarged company will float on London's junior market next month, pending shareholder approval.

Orogen, which was previously a gold exploration company but is now a cash shell listed on AIM, has offered to buy the ecommerce business's parent company Thread 35 for £6.3m.

The deal would constitute a reverse takeover, meaning Sosandar's directors will end up in control of the enlarged company and the womenswear business will effectively float on AIM by reversing into Orogen.

Orogen also announced that it has raised £5.3m through a conditional placing of shares, which will be used to finance the development of Sosandar.

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Sosandar was established last year by Ali Hall and Julie Lavington, the former editor and publishing director of Look Magazine. The two co-founders are now set to become chief executives of the enlarged company.

Adam Reynolds, chairman of Orogen, said: “Sosandar’s management team has extensive experience with the fashion sector, a solid understanding of their target demographic and is well connected with the fashion and media industries. Since its inception in 2016, Sosandar has quickly established itself and is already creating a stir in the fashion industry."

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Bill Murray, the current chair of Thread 35 will become non-executive chairman while Reynolds steps back to non-executive director.

Sosandar targets women over 30 and has attracted a significant following, including This Morning presenter Holly Willoughby.