Mattress retailer Eve Sleep’s shares dropped by as much as 16 per cent this morning after it announced investors were buying shares at a discounted price during a £15m fundraising round.
The e-commerce specialist said investors had committed to just under £10m of funding, with fund manager Neil Woodford promising £8m, the company’s chairman Paul Pindar adding £1m, and Channel 4 pledging an extra £400,000.
Eve was forced to row back on promises of selling for “significantly higher than the prevailing share price”, with investors buying in on a 30 per cent discount at 10p a share.
The mattress firm said it remained in talks with other parties to plug the more than £5m gap which remained.
The fundraise follows the sudden departure of co-founder Jas Bagniewski from the company earlier this year, as Eve said its international expansion strategy had not hit targets.
New chief executive James Sturrock, formerly the boss of Moonpig, said last month he plans on focusing on the company’s core markets in France, the UK and Ireland.
Today, Sturrock said: “Whilst the fundraise is not yet completed and is subject to a short delay, the board remains confident of delivering the investment from existing, new and potentially strategic investors which is required to deliver the business strategy.
“We look forward to putting the business on a stronger footing with a view to establishing eve as a leading sleep and well-being brand.”