Network expected to acquire additional broking businesses following new share placement
Cobra today announced that it is at an advanced stage of negotiating the acquisition of additional insurance broking businesses, after it raised £1.6m in a share placement.
A statement to the stock exchange read:
"COBRA Holdings plc ("COBRA" or the "Group"), a major UK-based retail and wholesale insurance broking group, announces that it has allotted 1,665,206 new COBRA shares for ash at a price of 97p each raising gross proceeds of approximately £1.615 million.
COBRA is at an advanced stage of negotiating the acquisition of additional insurance broking businesses and the purpose of the placing of new shares is to finance part of the initial consideration. A further announcement concerning the proposed acquisitions will be made in due course.
The new COBRA shares have been allotted subject to admission to AIM, which has been applied for and is expected to be effective on 1 April 2008. Following admission, COBRA will have 39,484,119 ordinary shares of 25p each in issue.
As a result of the allotment of 1,546,392 new COBRA shares pursuant to the placing, Wainford Holdings Limited, will hold 1,829,124 COBRA shares (registered in the name of WB Nominees Ltd) representing 4.6% of COBRA's enlarged issued share capital."