Source - SMW
Bagir, the designer, creator and provider of innovative tailoring, is planning to raise around US$8.5m, through a placing of up to 183,236,754 new ordinary shares at  3.5p apiece.

 The net proceeds of the placing - approximately US$8.1 million - will be used to:

-  make a payment of US$6.3 million in order to repay the Company's lenders, Bank Leumi and Discount Bank (the "Lenders"), and clear all outstanding bank debt (approximately US$21 million) with the balance being used as working capital in order to support the Group's business operations. Further background on the repayment agreement with the Lenders was announced on 25 July 2016

- support the working capital needs of the Company as it seeks to continue the trading momentum achieved in the first six months of 2016 under the new operational strategy.

 The placing is conditional on shareholder approval. 

Bagir reports first half earnings before interest, tax, depreciation and amortisation of $0.8m against losses of $0.4m a year ago.

Revenue for the six months ended 30 June 2016 has been in line with management expectations in both the US and the UK markets and amounted to $33.5m compared with $45.0m for the first half of 2015.

Chief executive Eran Itzhak said: "We have achieved a significant turnaround in the first six months of 2016 and we can now begin to show how the various elements of our Recovery Plan are coming together to create a new base from which we can grow the business. 

"The agreement we have reached with our Lenders is a key element and, if we are successful in satisfying the conditions, will transform our balance sheet. From this new position of strength we will then be able to implement our strategies around new customer acquisition, innovation and maintaining a highly efficient operational base. This is an exciting time to be involved with Bagir and we look forward to the future with confidence."


At 2:05pm: (LON:BAGR) Bagir Group Ltd. Ord Ils0.04 share price was +0.25p at 5.25p