Company also to acquire healthcare communications consulting company
By Devika Patel
Knoxville, Tenn., March 15 - Cello Group plc said it concluded a private placement of shares. It conditionally raised £2.8 million.
The company sold 5,333,333 ordinary shares at 52.5p each. The per-share price is a 13.22% discount to the March 14 closing share price of 60.5p.
The company also said it has reached an agreement to acquire MedErgy HealthGroup Inc., a healthcare communications consulting company based in Pennsylvania. The initial consideration will be paid via $5.5 million in cash and 5,804,049 ordinary shares. Additional payments of up to $3.5 million are expected in April 2014.
Proceeds of the placement, along with the company's existing banking facilities, will finance the cash costs of the acquisition.
The research, consulting and direct marketing services provider is based in London.
| Issuer: | Cello Group plc
|
| Issue: | Ordinary shares
|
| Amount: | £2.8 million
|
| Shares: | 5,333,333
|
| Price: | 52.5p
|
| Warrants: | No
|
| Announcement date: | March 15
|
| Stock symbol: | London: STEL
|
| Stock price: | 54p at close March 10
|
| Market capitalization: | £37.15 million
|
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