LONDON (ShareCast) - (ShareCast News) - Tissue converter Accrol Group Holdings announced a proposed placing and the lifting of its suspension from trading on Monday.
The AIM-traded firm said the proposed placing was for a total of £18m, by way of a conditional placing of 36 million new ordinary shares at a price of 50p per share .

If approved by shareholders, the placing shares to be issued were expected to represent approximately 27.9% of the enlarged issued share capital of the company immediately following admission, the board said.

On the lifting of its suspension on AIM, Accrol reiterated that its shares were suspended on 5 October at a closing mid-market price of 132p.

It said it was now proposing to raise the £18m in the placing, having renegotiated its banking terms with HSBC Bank, and was providing shareholders with a trading update and outlook statement in relation to the board's expectations going forward.

As a result, restoration of trading in the shares occurred at 0730 GMT on Monday.

"The past few weeks have been extremely challenging for Accrol and its shareholders, as we navigated our way through industry-wide issues and sought a solution to the group's short-term funding problems," said chairman Peter Cheung.

"We believe that the business is through the worst and thank all our investors for their patience, during the period of suspension.

"The board is very grateful to the company's shareholders and its bank for supporting the business through this difficult period."

Cheung said the company's new CEO, Gareth Jenkins - who joined the firm on 11 September - was already having a positive impact on the business.

"He has completed a full operational review and a restructuring is now underway.

"Gareth's considerable industry knowledge and proven track record for delivering significant operational efficiencies give the board confidence going forward and we look forward to providing regular updates on the group's progress."

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