MELBOURNE: Listed wholesale group Mercury brands has raised more than $1 million through the release of millions of new share options, its board of directors has announced.
The proceeds from the sales will be used to reduce the company's trade creditors and source product for the first half of the 2010 financial year.
In a statement to the ASX yesterday (June 22), the board said Mercury Brands had placed more than 65 per cent of forward orders for its summer 2009 budget.
"As a result of a strong second half trading performance the company has been able to reduce the amount of its bank debt by $800,000 to $2.7 million," the statement said.
In an update to investors earlier this year the troubled company admitted that the past six months had seen a considerable tightening of the market where retail spend in the apparel sector had declined for the first time in five years.
As a result the company said it would continue to roll out further brands and licenses to cover the market's needs.
The company, whose warehousing is based in Geelong but also has offices in Sydney, Melbourne and China, currently owns the licence for brands including Rochford Australia, No Fear, French Kitty, Crusty Demons and Contempo.