Cheshire fashion brand Sosandar plans to raise £4.5m in a share placing to accelerate the execution of its omni-channel strategy following its recent bricks-and-mortar sales agreement with Sainsbury’s.
The company will place just over 18.18m new ordinary shares via an accelerated bookbuild at 22p each to raise around £4m. In addition, it plans to carry out a separate offer of up to 2.27m new ordinary shares to raise a further £0.5m.
The investment will be used to increase stock and enable increased provision of its product range in-store from Autumn Winter 2023 onwards, and the funding will also create further balance sheet headroom to fast track other growth initiatives and accelerate customer acquisition.
Sosandar said in statement to the stock exchange: “The board believes that there is a compelling opportunity to accelerate the roll-out of Sosandar’s product range in-store with third party partners. As a new channel to market, the provision of Sosandar’s product range in-store will result in heightening brand awareness, which the board believes will ultimately help accelerate growth in the company’s market share.
“The board also believes that becoming an omni-channel brand will provide the company with an increased breadth of quality potential partners internationally. As such, the board believes that it is in the best interests of shareholders to raise additional equity for the company to fully capitalise on these opportunities and accelerate its future growth.”
Sosandar has so far bucked the downward trend observed by much of the online fashion world in recent times. It reported a profit for the six months to September 2022, alongside record sales in October and November.
