Eve Sleep’s share price dropped this morning after it revealed that investors were buying discounted shares during a £15m funding round.
The activity means that Eve reneged on its promise to sell for “significantly higher than the prevailing share price”, as investors bought shares for 10p, a 30% discount.
The mattress-in-a-box retailer said investors had promised just shy of £10m of funding, with chairman Paul Pinder adding £1m and fund manager Neil Woodford pledging £8m. Channel 4 will contribute £400,000.
It remains in talks to secure just over £5m to plug the remaining gap.
The fund-raising is intended to support plans from new chief executive James Sturrock, formerly the boss of Moonpig, who took over after the sudden departure of co-founder Jas Bagniewski following missed targets.
Sturrock plans to focus on the company’s core markets in France, the UK and Ireland.
Today, Sturrock said: “Whilst the fundraise is not yet completed and is subject to a short delay, the board remains confident of delivering the investment from existing, new and potentially strategic investors which is required to deliver the business strategy.
“We look forward to putting the business on a stronger footing with a view to establishing Eve as a leading sleep and wellbeing brand.”