SILK (ASX:SLA) expands on its growth strategy, igniting a $20 million placement

Company News

by Lauren Evans

One of Australia’s largest specialist clinic networks SILK (ASX:SLA) has taken a successful turn in their business approach, after finalising a $20 million placement to sophisticated and institutional investors.

The $213.4 million company has successfully raised $20 million by issuing 4.7 million new shares. SILK offered these securities at $4.30 per share, which represents a discount of 5.1 per cent to the firm’s last closing price.

The proceeds from the placement will partially fund the acquisition of Beauty Services Holdings Pty Ltd.

SILK Laser Australia operates alongside all Australian Skin Clinics and the Cosmetic Clinic in New Zealand. The acquisition is expected to complete by the end of August 2021.

SILK is known for its extensive and popular range of non-surgical aesthetic products and services, aligningwith Australian Skin Clinics' existing offerings.

SILK CEO Martin Perelman states, “We are pleased with the success of this equity raising. We are grateful to our existing shareholders, welcome our new shareholders, and thank them all for their support, as we deliver on our growth strategy and solidify our market position in the non-surgical aesthetic industry.”

The acquisition comes on the back of SILK’s opening of ten new clinics this financial year, with two more clinics expected to open by the end of the financial year.

SILK’s is now the second largest player in the Australian non-surgical aesthetic industry.

Shares in SILK Laser Australia (ASX:SLA) are trading 3.4 per cent higher at $4.69.

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