THG has raised £95.4m to fund the spin-off of its loss-making technology Ingenuity arm into a separate company.
The group said it received strong support from new investors and existing shareholders during Thursday’s equity raise, which resulted in it exceeding its £75m fundraising target.
THG raised £67.7m via a placing with existing shareholders, £22.2m through a subscription agreement and £5.4m from retail investors.
Chief executive Matthew Moulding invested £10m into the fundraise. It also received a £10m “strategic investment” from Frasers Group, as the Sports Direct owner looks to deepen its ties with the LookFantastic owner following its multi-year partnership announced in June.
THG said the additional net proceeds raised exceeding its £75m target, which will be used to provide medium term funding to develop Ingenuity in a standalone company, will be used for general corporate purposes.
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The fundraising comes after THG revealed a 5.2% drop in group sales to £442.8m in the three months to September 30, with growth in its beauty arm and Ingenuity arm offsetting a 10.5% fall in Nutrition.
Despite the drop, the group said sales in its nutrition division had “improved steadily” through the quarter following the MyProtein rebrand and a 17% rise in offline revenue growth from its retailer partnerships.
THG chief executive Matthew Moulding said: “It was especially pleasing to see another solid quarter of delivery from both our Beauty and Ingenuity businesses, rewarding the significant overhaul of their respective operating models during 2022 and 2023.
“The short-term disruption from the major rebrand of Myprotein is now behind us, and we were pleased that in September Nutrition delivered its best sales performance since January.
“We are also proud to be recognised in the top 250 companies worldwide for our contribution and efforts in sustainability thanks to our ongoing progress towards our net zero goals.
“Preparations for our busiest trading period are well advanced with efficiencies across the network over the last twelve months delivering further benefits for our Ingenuity clients to aid new customer acquisition.”
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