SILK Laser (ASX: SLA) share price climbs on equity raise update

SILK Laser shares are continuing their strong ascent this month…

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The SILK Laser Australia Ltd (ASX: SLA) share price has come out of a trading halt today. This follows the laser, skincare, and cosmetic injections company’s update to its recent capital raising efforts.

At the time of writing, SILK Laser shares are bucking the ASX trend, up 3.75% to $4.70. In comparison, the All Ordinaries Index (ASX: XAO) is down 1.3% to 7,522 points.

SILK Laser completes placement

One catalyst for today’s gain in the SILK Laser share price could be investor optimism over the company’s progressive plans.

According to its release, SILK Laser announced it has completed a fully underwritten placement to raise $20 million. The company received support from a number of sophisticated and institutional investors.

The offer will see approximately 4.7 million ordinary new shares, at a price of $4.30 apiece, allocated to participating investors. This represents a 5.1% discount on the issued shares prior to when the company went into a trading halt on 17 June 2021.

SILK Laser will use the proceeds from the capital raise to partly fund the entire acquisition of Beauty Services Holdings Pty Ltd, LMD2 Pty Ltd and its broader group of entities. Together this group operates Australian Skin Clinics in Australia and The Cosmetic Clinic in New Zealand.

It is expected that the acquisition will be completed at the end of August 2021.

The new shares are scheduled to settle this Wednesday 23 June, with allotment on the ASX on 24 June 2021.

SILK Laser CEO, Martin Perelman commented:

We are pleased with the success of this equity raising. We are grateful to our existing shareholders, welcome our new shareholders and thank them all for their support, as we deliver on our growth strategy and solidify our market position in the non-surgical aesthetic industry.

About the SILK Laser share price

Since the start of June, SILK Laser shares have strongly rebounded after hitting a low of $3.80 on 4 June. As a result, the company’s share price is registering a 26% gain over the last 6 months.

SILK Laser has a market capitalisation of around $213 million, with more than 47 million shares outstanding on its books.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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