LONDON (ShareCast) - (Sharecast News) - React Group has conditionally raised £420,000 via the placing of 140m shares of 0.3p each in order to strengthen its balance sheet and provide additional working capital.


The deep cleaning and decontamination specialists, which has seen interim losses widen thus far this year, leading it to shutter its asbestos removal business, carried out the placing with new and existing investors.

React's placing price of 0.3p represented a discount of approximately 20% to the stock's closing price of 0.375p on 13 August.

In addition to strengthening its balance sheet, React will use the proceeds of the placing to invest in additional sales and marketing, as well as continuing to improve its internal systems and controls.

React's chairman Gill Leates, said, "I would like to thank all the investors for their support in the placing. The additional working capital provided by the placing will enable React to invest in additional sales and marketing and to target larger contracts in its core areas of expertise."

As of 0830 BST, React shares had dropped 6.67% to 0.35p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE