Mendole raises $550K in share offering, far short of its $9M target
What's the deal? Danish company Mendole A/SDealroom has a profile for this one. Try Dealroom → has raised gross proceeds of US$530.2K through a directed issue and public offering of new shares, priced at US$1.01 each. Investors subscribed for 523,889 shares — just 6.1% of the maximum US$8.65M offering.
Who took part? Most of the money came through NordnetDealroom has a profile for this one. Try Dealroom →, which brought in US$445.1K, with the remaining US$85.1K subscribed via other Danish banks. The raise did not materially change Mendole's ownership structure.
Why now? The offering was tied to Mendole's planned acquisition of Rebo A/SDealroom has a profile for this one. Try Dealroom →, though it was not conditional on the deal closing. Eminova Fondkommission ABDealroom has a profile for this one. Try Dealroom → had provided a US$891.7K issue guarantee, but that lapsed unused after the acquisition failed to complete.
What's the endgame? Mendole is pursuing a buy-and-build strategy. With the Rebo deal on hold, the board will direct net proceeds to group operations, working capital, and other acquisitions. It says it remains in talks with investors and lenders to finance the Rebo purchase.
What could go wrong? The offering diluted existing shareholders by 8.9%, while raising a fraction of the target. Costs ran to US$95.3K excluding VAT — 18% of gross proceeds — a steep ratio for a small raise.
The signal: This is a quick re-raise on the Spotlight Stock MarketDealroom has a profile for this one. Try Dealroom →, and its weak subscription rate underlines how difficult it can be for small-cap buy-and-build firms to fund acquisitions through public equity when a target deal stalls.
Read more: placera.se
Image credit: Generated with Gemini
