City of London Group places 1.84m shares

1st Oct 2012 13:11

Investment company City of London Group has placed just under 1.84m new ordinary shares at 70p each - a premium to the net asset value - representing 10 per cent of the current shares in issue. The placing raised just under £1.286m before costs, which will be used to develop the company's existing business platforms, for working capital and to invest in new opportunities as they arise. Eric Anstee, Chief Executive, said: "City of London Group has a history of recognising areas which are poorly served by current forms of finance and in particular bank lending. Through our business platforms we have been facilitating lending into the SME sector and we are pioneers in the litigation funding sector. "This successful placing of £1.3m of new equity will enable us to fund the continued growth of our platforms as well as invest in further exceptional management teams as and when the opportunity arises." The share price fell 3.27% to 74p by 13:27.NR