As previously indicated, the Board of Tribal have announced a fully underwritten £21m Rights Issue.
The gross proceeds of the 1 for 1 Rights Issue (approximately £21 million), together with the disposal of the Synergy business announced earlier in the month, raises approximately £41.12 million, which will be used to reduce the Group’s net debt.
The Rights Issue and Disposal are seen as critical steps in ensuring the Group satisfies the next banking covenant net debt / EBITDA test on 30 June 2016.
The Company also announced that it’s shares will move from the main Stock market onto AIM with the AIM admission expected to take place on 3 May 2016.
With lower costs and simpler administration and regulatory requirements, the Board believes AIM is more appropriate to a company of Tribal’s size.
Ian Bowles, Chief Executive of Tribal, said:
“Tribal’s recent progress has been restricted by its high levels of debt. As I commented at the time of the Synergy disposal earlier this month, the proceeds of the Disposal and Rights Issue will restore the Group’s balance sheet and enable the management team to take the business forward in its domestic and international markets.