Colliers CRE has raised £18.4m of equity to ensure its survival.
The AIM-listed property services firm raised the equity through a sale of 1m shares at a price of 20p a share – a 49% discount to its closing price on 39.25p.
The biggest investor is FirstService Real Estate Advisors, the fourth largest property service firm in the world and the largest member of Colliers International which pumped £8.9m into the business.
This means that the Canadian giant will now own 29.9% of the company as revealed by Property Week (02.10.09).
Colliers said that its debt burden had meant that the fundraising was necessary ‘to ensure the company’s survival’.
It said the new equity would ‘significantly’ strengthen its balance sheet and allow it to ‘take advantage of strategic opportunities’.
Panmure Gordon is the nominated advisor and broker to Colliers CRE.
The news coincided with the firms half year results to 30 June in which it reported a loss before tax of £11.84m compared to a loss in the same period last year of £4.49m.
It said that its annual revenues were down by 32% to £27.07m, and that it had reduced its cost base by £25m.
The firm also said it has amended its three year £18m banking facility.