Insurance-technology company Ensurance (ASX:ENA) has seen a dramatic increase in its UK operations since launching in August 2016 and is now seeking to maintain momentum through a placement and entitlement offer.
The combined value of the twin raisings is approximately $7 million before costs, with the placement seeking to raise $800,000 and the entitlement offer $6.23 million.
Patersons Securities has been appointed as lead manager for the share placement, which will offer the shares at an issue price of 4 cents per share.
Shares issued under the placement may participate in the entitlement offer, which will offer nine fully paid ordinary shares for every ten shares held by eligible shareholders – also at an issue price of 4 cents per share.
In an announcement to the market the company said: “[Ensurance] is in discussions in regard to having the entitlement offer fully underwritten.”
The proceeds of the raisings will be put towards the retirement of short term debt, the expansion of the business in the United Kingdom, working capital and to cover the costs of the recapitalisation.
Ensurance UK has had significant success targeting the region’s construction and engineering underwriting sectors.
It now holds key partnerships with some of Europe’s largest insurance organisations, for example Ensurance UK and Ensurance Underwriting Australia are both Lloyd’s of London coverholders, capable of issuing insurance documents on behalf of Lloyd’s syndicates.
Ensurance UK is also in partnership with Swiss Re Corporate Solutions, the world’s second-largest reinsurer.
