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Key Points:
- Woodbois has successfully raised £1 million from new and existing shareholders to enhance its balance sheet and support growth initiatives.
- The funds will be utilized to optimize exports, expand operations, and facilitate the registration process for the company's carbon credits trading business.
- The new ordinary shares issued represent 9.05% of the company’s existing voting ordinary share capital prior to the fundraising.
Woodbois (LSE:WBI) has announced the successful subscription of £1 million from both new and existing shareholders, marking a significant step in the company’s strategy to bolster its financial health. The net proceeds from this fundraising initiative will not only strengthen the company's balance sheet but also provide essential funding to accelerate exports of its products.
This injection of working capital enhances Woodbois's financial position, improving liquidity for timely operational needs. The additional resources will support the company's growth initiatives, including plans to optimize exports to reach an impressive 50 containers per month. With the increased working capital, Woodbois aims to fund expansions and foster innovation that could drive future revenue growth. The company anticipates that the enhanced liquidity will lead to improved operational efficiencies and better cost management.
The Board of Directors is confident that this strategic fundraising move will enhance stakeholder confidence, showcasing the company's robust financial management capabilities. By reducing dependency on debt, Woodbois will have greater flexibility to seize market opportunities as they arise. Moreover, the proceeds will also be allocated towards funding the registration process of its carbon credits trading business, aligning with the growing emphasis on sustainability and environmental responsibility.
The gross proceeds from this fundraising effort, approximately $1.3 million, were raised through the subscription of 357,142,857 new ordinary shares at a price of 0.28 pence each. The new ordinary shares represent 9.05% of the existing issued voting ordinary share capital of Woodbois prior to this fundraising effort. Axis Capital Markets Limited has facilitated the share subscription on behalf of its clients.
Upon issuance, the new ordinary shares will be credited as fully paid and will rank pari passu with the existing ordinary shares in the capital of Woodbois. This means they will hold the same rights to dividends and other distributions declared after the date of issue, ensuring equality among shareholders.
To formalize the fundraising process, Woodbois has entered into two subscription agreements with Axis. These agreements stipulate the terms and conditions of the subscription, allowing Axis to terminate the agreements under certain circumstances prior to the relevant admissions.
