Agricultural supplies company Wynnstay Group PLC plans to raise up to GBP10.5 million through a placing of shares, as a strong trading backdrop provides several opportunities to accelerate company growth.

Proceeds from the placing will go towards the redevelopment of the Calne feed facility, and finance future potential acquisitions by the company.

The placing will be conducted at a minimum issue price of 550 pence per share. Shore Capital will act as sole bookrunner.

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"We believe that this is an important fundraising for Wynnstay. It will support both the planned redevelopment of the Calne feed facility and assist with potential future acquisitions," said Chief Executive Officer Gareth Davies.

"While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and the fundraising proceeds will enable us to accelerate growth plans."

The current stock price is 617.51 pence, representing a 13 per cent increase over the past 12 months.

Wynnstay was originally founded in 1918 by tenant farmers of the local Wynnstay estate near Wrexham in Wales and constituted as a farmers' co-operative shortly afterwards, and is now a major supplier of products and services for UK farmers with depots across the country with its head office at Eagle House in Llansantffraid.