City Chic Collective has completed its share purchase plan (SPP) and has increased it from $10 million to $31.1 million to capture the demand from shareholders.
As announced on July 24, City Chic opened the SPP to raise additional funds to acquire the eCommerce assets of US plus sized retailer Catherines - a move that was speculated by the media before its official announcement - as well as further strengthening its balance sheet and providing financial flexibility to accelerate growth globally.
The business closed the SPP on August 18 following strong demand from shareholders and exercising its discretion, increased the SPP from $10 million to $31.1 million to meet the demand.
The SPP follows City Chic's successful completion of an $80 million institutional placement, which will also be used to acquire Catherines.
Speaking on the potential acquisition in July City Chic CEO and MD Phil Ryan said that the potential acquisition of Catherines will help the business achieve its expansion goals.
"We are excited about the opportunity to acquire the eCommerce assets of Catherines, a well-known plus-size brand with a deep history and strong customer following in the US market.
"The potential acquisition of Catherines meets our strategic objectives of scaling our business across geographies and plus-size segments.
"The acquisition of the eCommerce assets of US plus-size retailer Avenue in October 2019 provides us with a blueprint for expansion and an understanding of the benefits of deploying our lean, customer-centric operating model to drive revenue growth and cost efficiencies," he said.
Approximately 10.2 million new fully paid ordinary shares will be issued at price of $3.05 per SPP Share - the same price investors paid under the Placement.
The shares were expected to be issued on August 24 and to commence trading on the ASX on August 25.