SMALL CAP MOVERS: Boohoo raises £40m in upsized spherical

There’s never a dull week for investors in Boohoo, the online fashion retailer that has opted for the retro look by trading as Debenhams Group.

Earlier this week it unveiled plans to raise £35 million to bolster its balance sheet. The new shares were offered at a modest discount to the prevailing market price, giving chief executive Dan Finley greater financial headroom as he presses ahead with his turnaround strategy.

The first wobble came when details of the fundraising appeared to leak ahead of Wednesday’s formal announcement. 

Matters were then complicated by a report in The Times suggesting Mike Ashley, the Sports Direct founder and Boohoo’s largest shareholder, had attempted to frustrate the placing by selling part of his stake at lower prices.

Whether that account was accurate has now been overtaken by events. Boohoo ultimately secured £40 million in an upsized round, suggesting appetite remained intact despite the noise. 

The Debenhams Group which owns Boohoo announced plans for a capital raise this week

The shares ended the week just 5% lower, a relatively contained reaction given the dilution from the additional stock.

Across the wider market, the AIM All-Share edged up 0.5% to 815, a steady if unspectacular performance that lagged the FTSE 100‘s 2.3% gain.

SkinBioTherapeutics headed the list of fallers after restating its financials following the resignation of chief executive Stuart Ashman a week earlier. On Friday it said Alyson Levett had been appointed to oversee an investigation into the restatements, supported by forensic accounting specialists at FRP Advisory.

‘Existing external legal and professional advisers will also support the process, as necessary,’ investors were told.

The shares have slumped 47% over the week and are down almost 70% year to date.

The fallout has weighed on OptiBiotix Health, which helped found SkinBio and retains a 5.64% stake. OptiBiotix reiterated its intention to hold the shares, though its own stock has fallen around 10% since the issues emerged.

Directa Plus, the graphene specialist, dropped 38% despite no fresh news. In January it highlighted the need for additional funding as cash reserves dwindled, so investors may be bracing for an update.

Premier African Minerals shed 24%, leaving it valued at roughly £3.5 million and down 50% year to date. In spring 2023, the company was worth more than £220 million amid optimism around its Zulu lithium project. The latest annual general meeting notice struck a more sober tone, focusing on survival funding.

Shareholders are being asked to approve up to 35 billion new shares, plus 5 billion tied to existing conversion rights, against a base of about 13.9 billion. Management disclosed a $13.4 million interim funding requirement to July 2026, largely to complete plant works and meet liabilities.

Among the risers, Aferian surged 118% after securing a short-term extension to its $16.5 million senior banking facilities. Barclays, Bank of Ireland and HSBC have extended the facilities to 20 March 2026, giving the group more time to pursue a sale of its Amino and 24i units or the company as a whole. Management said several credible parties were in advanced discussions.

Trellus Health ended the week 27% higher after announcing a six-month contract extension with Johnson & Johnson Health Care Systems. The deal keeps its Trellus Elevate programme in place for patients with moderate to severely active inflammatory bowel disease prescribed a J&J therapy.

Finally, Galantas Gold remains one of the year’s standout performers. The shares are up 223% since last month’s announcement of a transformational acquisition. The company has agreed to acquire 100% of the Andacollo Oro gold project in Chile, a past-producing open-pit mine with a historical inferred resource of 5.06 million ounces of gold.

The related-party transaction, involving an asset controlled by executive Robert Sedgemore, will see Galantas assume $3 million of debt, pay $1.5 million to Sedgemore and make staged payments of $27.5 million through 2029, alongside issuing 91.3 million new shares.

The deal materially expands the group beyond its Omagh gold mine in Northern Ireland and significantly enlarges its development pipeline. Investors have clearly welcomed the scale of the opportunity, delivering a sharp re-rating in the stock.

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