Staffline seeks to raise £41m to ease debt fears
Recruitment firm Staffline has this morning announced plans to raise up to £41m by selling off shares to private investors and current shareholders.
The UK-based company is seeking to make £34m through a placing, with a further £7m to come from an open offer.
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Qualifying shareholders will be offered a further stake in the company at an issue price of 100p per share.
It comes in a bid to reduce the company’s net debt, with Staffline confirming that it intends to use all of the proceeds to those ends.
Earlier this month the firm required a waiver of possible future breaches to its lending agreement after it faced headwinds in its May trading update, citing Brexit uncertainty.
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In January this year it also announced it would be reviewing its invoicing and payroll practices within the recruitment division after concerns were brought to the board.
Its share price has since plummeted from more than 1,000p per share to a low of 91p last Thursday. It has since recovered slightly to 122p at the time of writing.