COMMUNISIS has announced the issue of £20m-worth of new shares to help it achieve its objectives and make acquisitions.

The contract printing and marketing services specialist is calling on shareholders to approve the firm placing, placing, and open offer of 50m new shares at a general meeting on March 5.

New shares are priced at 40p, a 12.3% discount to the closing price of 45.625p on February 13, the last business day before it announced its proposals.

The board is unanimously behind the fundraising which it considers “to be in the best interests of the company and its shareholders as a whole”.

It said the proceeds will “help the group achieve its strategic objectives and will be used for investment in new contracts and to fund previously announced restructuring costs in connection with the group’s Lisburn and Leeds operations, and also small acquisitions and working capital.”

Chairman Peter Hickson chairman said: “Communisis continues to make significant progress in growing sales and expanding its service offering.

“As the communications landscape continues to change, we are the trusted partner to our clients, in particular with the move towards more digital communications.
 
“The fundraising which we are proposing today will strengthen our balance sheet considerably; providing us with further resource to invest in delivering new contracts, optimise our cost base and supplement the organic growth plan with niche acquisitions.”
 
He added: “We are pleased to report that the placing was substantially oversubscribed with strong demand from both existing shareholders and new institutional investors.”

Leeds-based Communisis employs more than 300 staff at its flagship Liverpool digital printing plant on Speke’s Estuary Commerce Park.