magazineFlowgroup eyes £20m back-up plan
Embattled boiler technology developer Flowgroup (FLOW:AIM) may be be forced into a hugely discounted emergency fund raise. The £20m cash call would be needed if the company cannot find a buyer for its independent household energy supply business, Flow Energy. It has 270,000 consumer customers.
Talks with several parties have seen a preferred buyer emerge although a deal looks far from certain. New funding, if required, would be priced at 1.5p per share, a 53% discount to the prevailing share price before news broke.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Big News
Editor's View
Great Ideas Update
Investment Trusts
Larger Companies
Main Feature
Money Matters
Smaller Companies
Story In Numbers
Talking Point
Under The Bonnet
Magazine archive
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.