THIS ANNOUNCEMENT, INCLUDING THE INFORMATION CONTAINED IN IT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ANY OTHER JURISDICTION. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION IN THE GROWTH PROSPECTUS PUBLISHED BY SAMARKAND GROUP PLC IN CONNECTION WITH THE PROPOSED ADMISSION OF ITS ORDINARY SHARES TO TRADING ON THE AQUIS STOCK EXCHANGE.
DATE: 12 March 2021
Samarkand Group plc
("Samarkand", the "Company" or together with its subsidiaries the "Group")
Proposed Admission to the Aquis Stock Exchange - significantly oversubscribed Fundraising
On 8 February 2021, Samarkand Group plc, the cross-border eCommerce technology and retail group, announced its intention to apply for admission of its Ordinary Shares to trading on the Apex segment of the Aquis Stock Exchange Growth Market ("Admission") and that the Company was proposing to raise approximately £10m by way of a placing to institutional investors (the "Placing") and a subscription to qualifying investors (the "Subscription") (together the "Fundraising").
Following an investor roadshow undertaken by VSA Capital, the Fundraising was significantly oversubscribed and the Company is therefore pleased to announce that it has raised £17.0 million (gross) conditional on Admission.
Key Highlights
- Successful, significantly oversubscribed fundraising for gross proceeds of £17.0 million which was scaled up from the original £10m target to partially accommodate demand.
- Net proceeds from the Fundraising will be used primarily to:
- further develop its Nomad Platform's functionality and services;
- expand the Group's business development activities; and
- make further strategic acquisitions.
- The Fundraising was split amongst approximately 70% institutional investors and 30% to qualified investors as defined in the Prospectus Regulation ("Individual Investors").
- Over 100 individual Investors subscribed for shares, and it is expected that this would have been considerably higher had the major retail client broker 'platforms' been able to process IPO applications electronically.
- The Fundraising was at an issue price of 115 pence per share.
- Upon Admission, the Company will have a market capitalisation (at the issue price) of approximately £59.4 million.
- UK Growth Prospectus expected to be published on 15 March 2021 following FCA approval.
- Admission to the Apex segment of the Aquis Stock Exchange Growth Market is expected to take place at 8.00 a.m. (UK time) on 22 March 2021.
- On admission the Company will have a free float of approximately 44%.
- VSA Capital Limited acted as Financial Adviser and Broker in relation to the Fundraising and is acting as the Company's AQSE Corporate Adviser and Broker from Admission.
Scale-back and Allocations
The fundraising received strong interest from institutional and Individual Investors and was significantly oversubscribed. Despite the Fundraising increasing from £10m to £17m, applications by Individual Investors and Institutional Investors had to be scaled back significantly. Given the strong demand for shares, the Company and VSA Capital were mindful of the desire to ensure a broad spread of shareholders and strong liquidity once trading began.
Institutional Investors were scaled back by as much as 50%.
Allocations for Individual Investors subscribing for smaller blocks of shares were made so as to satisfy such applications substantially in full. For example, subscribers for up to £30,000 of shares received over 75% allocations. For the wide range of larger applications from Individual Investors, allocations were scaled back on similar lines to institutional investors.
David Hampstead, CEO of Samarkand, said:
"We're thrilled with the reaction that we've received and look forward to welcoming our new shareholders. This is a clear validation of our business model and I would like to thank our employees, customers, partners and existing shareholders for helping us to reach this exciting stage. Our upcoming flotation on the Aquis Stock Exchange is a hugely significant moment for Samarkand. The increased capital raise will enable us to invest across all aspects of the business and help us take full advantage of the market opportunity."
For more information, please contact:
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Samarkand Group plc
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Via Alma PR
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David Hampstead, Chief Executive Officer
Eva Hang, Chief Financial Officer
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http://samarkand.global/
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VSA Capital - AQSE Corporate Adviser and Broker
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+44(0)20 3005 5000
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Andrew Raca, James Deathe, Pascal Wiese (Corporate Finance)
Andrew Monk, David Scriven, Peter Mattsson (Corporate Broking)
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IPO@vsacapital.com
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Alma PR
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+44(0)20 3405 0213
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Josh Royston, Robyn Fisher, Joe Pederzolli
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samarkand@almapr.co.uk
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About Samarkand Group plc
Samarkand is a cross-border eCommerce technology and retail group focusing on connecting Western Brands with China, the world's largest eCommerce market. The Group has developed a proprietary software platform, the Nomad platform, which is integrated across all necessary touch-points required for eCommerce in China including eCommerce platforms, payments, logistics, social media and customs. The Nomad platform is the foundation on which the Group's Nomad technology and service solutions are built. The core products include Nomad Checkout, Nomad Storefront, Nomad Commerce, Nomad Distribution and Nomad Analytics.
The Company's current customer base comprises leading European brands such as 111SKIN, Shay & Blue, Omorovicza, ICONIC London, Philip Kingsley, Temple Spa, Zita West Products and Planet Organic. Samarkand has also successfully grown its own brand, Probio7, acquired in December 2017.
Founded in 2016, Samarkand is headquartered in London, UK with an office in Shanghai employing over 90 staff.
For further information please visit https://www.samarkand.global/
