Whitestone Group Accelerating Growth With Capital Raise; €40.0m From 2 Different Sources

Whitestone Group announced that it has successfully completed a private placement of 1,923,045 new ordinary shares at an issue price of €13.0ps – the capital raised was €25.0m, including the issue premium. As subscriptions exceeded €25.0m, the Board of Directors decided to reduce (proportionally) the number of shares allocated to each investor to comply with this limit. Additionally, the BoD has agreed in principle to increase the capital via the authorised capital in order to welcome a new shareholder, unrelated to existing shareholders, to take a 10.0% shareholding as well as to enable investors to obtain their allocation wished initially. This capital increase, for an amount of €15.0m, will be carried out at the same issue price of €13.0ps, and should be finalised by the end of June'24, subject to compliance with all legal conditions and formalities. We welcome this news as these new financial resources will enable Whitestone Group to support the development of its existing participation and increase its stake in them, as well as investing in other companies in line with its strategy. We reiterate our BUY rating and €14.2 TP.