United Kingdom - 04/25/2019 (PRDistribution.com)
After a successful 2018, both in revenue and profits, Romco's board of directors have agreed that a mini bond release either listed or unlisted, should be considered as an alternative to bank financing. Romco Group, a UK multinational, recycles, trades and process non ferrous metal's globally.
The capital raised will be used to 'spur growth' the company says, whilst allowing room for more 'value addition on existing products'. Ivan Paoli a co- founder at Romco said, 'this will be an exciting way to raise capital plus some brand exposure prior to any potential IPO'.
The Group also has plans beyond metals, and in a recent bid to 'ease the burden on the oceans and divert renewable waste from landfills' has to decided to commence the recycling of plastic PET bottles.
With revenue's reaching £2.0m in 2018 and with 2019 revenue set to exceed £6.5m, capital is required to incentivise the groups current network, suppliers currently have worked with credit terms which some have deemed unfavourable. Neil Buckley, a member of the executive team at Romco went on to say, 'the mini bond will allow us to offer more favourable terms to suppliers, ensuring growth to suppliers and the company alike'.
The company along with external analysts believe a successful raise can help to increase revenues ten fold within the next 6-12 months. Romco's bond and model is unique in the sense that there transaction cycles are typically 60-90 days, this allows for the company to offer more attractive terms to investors.
Romco plans to raise £3.25m. The bond will be for a 3 year period, paying a coupon of 9.25%.