The Maggie Beer Holdings Ltd (ASX: MBH) share price has returned from its trading halt and is charging higher today.
At the time of writing, the premium food company's shares are up an impressive 18% to 43 cents.
Why was the Maggie Beer share price in a trading halt?
Maggie Beer requested a trading halt earlier this week so that it could raise funds to acquire Hampers & Gifts Australia for $40 million in cash and shares.
Hampers & Gifts Australia is the company behind the Hamper Emporium and Gifts Australia ecommerce businesses.
The release advises that these businesses are forecast to generate revenue of $36.4 million and EBITDA of approximately $9.1 million in FY 2021.
This morning Maggie Beer revealed that it has successfully completed the placement and the institutional component of its entitlement offer.
This means the company has raised gross proceeds of $20.4 million, comprising $10.9 million from the placement and $9.5 million from its institutional entitlement offer.
These funds were raised at 35 cents per share, representing a 4.1% discount to its last close price.
According to the release, the capital raising had strong support from institutional investors. The placement attracted strong demand from both existing and new investors, whereas the entitlement offer experienced a take-up rate from eligible investors of greater than 97%.
Maggie Beer's CEO, Chantale Millard, said: "We are very pleased with the strong support shown by new and existing shareholders for the capital raising and the acquisition of Hampers & Gifts Australia Pty Ltd. This exciting transaction will help us transform the MBH Group and move it to its next level of growth and shareholder value. We look forward to sharing the journey with our shareholders, as we execute our e-commerce and direct to consumer strategy."
The company will now seek to raise a further $9.6 million from retail shareholders at the same price.