Fast-expanding Scottish travel group Minoan has announced it will raise £1.3 million from a shares issue to fund expansion including a Groupon-style travel product provider.
The group also said it has reached an agreement to install a virtual network to provide travel branches for an unnamed major UK retailer.
No further details of the two developments in the UK leisure travel sector were revealed in a business update released today.
Minoan said the board is continuing to review further opportunities for expansion in the cruise market and announcements are expected soon.
The Glasgow-based AIM-listed firm has snapped up a series of travel agents in Scotland including Stewart Travel, John Semple Travel and Ski Travel Centre.
It has placed 16.25 million shares, subject to stock market approval, raising £1.3 million from institutional and other investors.
It is expected that this will be approved on August 23 after which time there will be 145.92 million ordinary shares in issue.
The group said it is “now in position to take advantage of commercial opportunities as they arise and the directors have an immediate target to increase the total transaction value to £100 million per annum compared to the existing level of approximately £45 million”.
Minoan has appointed WH Ireland as its nominated advisor. Christopher Egleton, chairman, and Duncan Wilson, chief executive, said in a joint statement:
“We are delighted at the appointment of WH Ireland Limited as the company’s nominated adviser, as announced yesterday, and are greatly encouraged by the level of support for the placing and at the future prospects for both the project and the travel and leisure business.”