Sosandar share placing targets £4m fundraising for expansion

By

Nigel TAYLOR

Published
Feb 8, 2023

Fast-growing women’s fashion e-tailer Sosandar wants to raise around £4 million to support its ambitious expansion plans. News of the stock market raise comes after last month’s signing of a major deal with UK supermarket giant Sainsbury's that will see Sosandar’s first move into physical stores.

The retailer is seeking to secure the funding boost through placing new shares, it announced to the London Stock Exchange on Wednesday.

Sosandar said it’s seeking to raise additional funding “to capitalise on the opportunities in its markets and accelerate its future growth”.

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It intends to use the net proceeds of the placing “primarily to accelerate the execution of its omnichannel strategy through further investment in stock, enabling increased provision of Sosandar's product range in-store with third-party partners including Sainsbury's from autumn/winter 2023 onwards”.

It also has online tie-ups with John Lewis, M&S, Next, JD Williams and Very.

The company added that the net proceeds will create “further balance sheet headroom to fast-track other growth initiatives as well as enable accelerated investment in the company's proven customer acquisition model”.

The proposed placing will be via the issue of not less than 18,181,818 new Ordinary Shares at the issue price of 22p per share.