Lok’n Store Group PLC on Thursday announced its intention to conduct a fundraise to raise £18 million through a placing of shares at 765 pence each.

The placing price represents a discount of 12% to Lok’n Store’s closing price of 870 pence per share on Wednesday in London. On Thursday, Lok’n Store closed 3.4% lower at 840.00p.

The proceeds of the fundraise will be used to support the development of the company’s Landmark store programme in the UK to include new freehold and leasehold self-storage sites.

‘This funding will support the growth of the company in the structurally under-supplied UK self-storage market. Our pipeline will, when fully operational, add 37.7% to available space, which, as those new stores fill up, will generate more cash flow for future growth investment and increased distributions to shareholders,’ explained Chair Andrew Jacobs.

As part of the fundraising, the company will also make a retail offer open to existing retail shareholders using the REX offering platform.

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