McColl’s Retail shares sank on Monday after the convenience retailer confirmed it is currently exploring options relating to a potential capital raise to increase the number of its Morrisons Daily store conversions.
Responding to press speculation, the company said the capital raise would also enable it to accelerate the pace of roll-out of its Morrisons Daily store conversion programme, and strengthen the balance sheet.
“No final decisions have been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise,” it said, adding that a further announcement will be made if and when appropriate.
The statement came after Sky News reported on Sunday that the group was planning a £30m cash call. It said McColl’s had approached institutional investors about a placing to raise almost as much as its existing £40m market capitalisation.
At 0935 BST, the shares were down 17.4% at 28.90p.
