Geoffrey Flight to step down from Rotala board as it raises cash for Tividale and Redditch depot improvements and potential new acquisitions
Rotala plc has raised approximately £2.40m (before expenses) by way of a placing of 3,872,581 new ordinary shares at a price of 62p per share from both new and existing shareholders.
Of the proceeds, £800,000 is to be invested in ‘enhancing facilities’ at the operator’s Tividale and Redditch depots. The investment in Redditch will involve expanding maintenance facilities at the depot and the usable area of the site, while the larger investment in Tividale aims to more than double the number of buses operated from the site.
The remainder of the net proceeds, approximately £1.44m, are intended to enable Rotala to continue its ‘buy and build strategy.’ To date, Rotala has grown predominantly through acquisition and the company said it continues to be actively engaged in monitoring and securing attractive bolt-on opportunities.
The operator has also announced that Geoffrey Flight is to step down from the Rotala board and has sold all of his 1,100,000 shares. The company is seeking to appoint an additional Non-Executive Director. The company said it thanked Geoff to for his contribution to the development of Rotala over the past 10 years and wished him well for the future.
Rotala has disclosed director’s dealings taking place as part of the placing.
Graham Spooner, a Non-Executive Director of Rotala plc, has agreed to subscribe for 50,000 Placing Shares at the Placing Price through his self-invested personal pension. Graham’s total beneficial interest in the company will be 50,000 Ordinary Shares, representing approximately 0.12% of its enlarged issued ordinary share capital with voting rights.
Non-executive Chairman, John Gunn, has sold 750,000 shares, leaving him with an interest in 8,419,348 ordinary shares and 19.95% of Rotala’s enlarged issued ordinary share capital with voting rights.