Huddled Group (LSE:HUD) announced it is raising new equity through a share subscription and a concurrent retail offer, with the RetailBook component expected to complete on 1 July.
It is raising £1.24 million through the subscription of 311 million new shares, priced at 0.4p each.
The AIM-listed online surplus goods retailer said proceeds will be deployed across three priorities: broadening its stock of surplus products, which the company says demonstrably lifts both conversion rates and average order value (AOV); stepping up TV and radio marketing to acquire customers at volume; and strengthening working capital to support scaling.
The board believes the funds raised are sufficient to reach operational cash flow positivity.
Executive Chairman Martin Higginson, whose wholly-owned vehicle M Capital Investment Partners is participating in the subscription, taking £175,000 of stock, said the business enters this phase having embedded next-day delivery as standard and achieved an "Excellent" Trustpilot rating across more than 35,000 reviews.
"This capital raise gives us the fuel to accelerate revenue growth and delivers a clear pathway to profitability," Higginson said, also flagging early tests in live shopping on TikTok, Whatnot and eBay Live as a new channel the company intends to pursue decisively.
The subscription was transacted on 30 June, with the retail offer tranche due to settle on 1 July.
