By Scott Wright
PARSLEY Box, the Scottish ready-meal delivery company, is looking to raise £7 million from shareholders to shore up its balance sheet, provide working capital, win new customers, and develop its product range.
The move by the Edinburgh-based company, which targets the Baby Boomer generation, comes after it has seen its share price steadily fall since floating on the stock market in March of last year, in the depths of the pandemic.
Shares rose sharply after details of the funding bid were announced, closing up 21% at 21.8p. The firm had floated at a placing price of 200p per share.
The company announced to the stock market plans to raise around £5.9m through a placing, and a further £1.1m through an open offer. It noted that the company’s directors and associates intend to contribute £4.2m to the fundraising.
Parsley Box, which was founded by husband and wife Adrienne and Gordon MacAulay in 2017, said the proceeds would be used to target new customers, create a membership community, and develop products, including beyond food. They would also be used to strengthen the company’s balance sheet, and provide general working capital to support scaling up in the next four years.
The flotation of Parsley Box valued the business at £84m, and came as it experienced high demand during lockdown, when its target demographic found it difficult to get to shops. However, it has run into challenges in recent months. In September, it warned it would have to lift prices on “selected” product lines as supply chain constraints put pressure on the wider food and drink industry. The following month it said staffing issues throughout the supply chain cut its available stock by half.
Chief executive Kevin Dorren is the firm’s biggest shareholder with a stake of 11.5%. Approval for the fundraising plans will be sought at a general meeting, the date of which has still to be confirmed.
The open offer will not be underwritten, the company said.
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