Shares of East Imperial climbed 18% in early trade on Monday as the company announced its plans to raise £2.2 million ($2.9 million) through the issuance of convertible loan notes. This strategic investment will fuel the company’s expansion initiatives.
At 0740 GMT, shares were up by 0.15 pence, reaching 1.0 pence.
The renowned producer of drink mixers intends to issue 10% 2025 secured convertible loan notes to its Chinese Mainland and Macau distribution partner, Wen Hua International. The issuance will take place in two parts, with the first part totaling £1.5 million and the second part amounting to £733,333.
However, the issuance of the loan notes is subject to shareholder approval, which will be sought at a general meeting scheduled for August 4.
Chief Executive Tony Burt expressed his excitement about leveraging the raised funds to capitalize on future opportunities. He specifically emphasized accelerating growth in the crucial U.S. market, as well as exploring additional prospects with WHI in Asian markets. Burt also emphasized the intention to drive sales resources and introduce new and innovative product offerings.