REG - Huddled Group PLC - Proposed Share Subscription, Debt Facility & RPT

HuddledAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260206:nRSF9684Ra&default-theme=true

RNS Number : 9684R  Huddled Group PLC  06 February 2026

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.

 

6 February 2026

 

Huddled Group plc

 

("Huddled", the "Company" or the "Group")

 

Proposed Share Subscription, Debt Facility and Related Party Transaction

 

Huddled Group plc (AIM:HUD), the circular economy e-commerce group is pleased
to announce that it has received commitments for a proposed subscription of up
to  £730,000 of new Ordinary Shares(1) in the Company at a price of 1.75
pence per share (the "Proposed Subscription"), alongside a debt facility of up
to £600,000 (the "Debt Facility") to support its current growth.  The
Company also intends to announce a retail offer via the Winterflood Retail
Access Platform ("WRAP") to its existing shareholders on the same terms as the
Proposed Subscription for approximately £100,000.

 

Management and connected parties have committed to subscribe for up to
£370,000, with existing institutional shareholders, and one new shareholder
placing firm orders for £360,000. (The management and connected parties'
amount may be adjusted dependent on the amount raised through the WRAP).

 

The Company will shortly release a separate announcement with further details
of the WRAP. The Proposed Subscription and the WRAP are expected to complete
on Monday 9 February 2026 and further details of which will be announced as
soon as practicably possible thereafter.

 

The funds raised from the Proposed Subscription, the Debt Facility and the
WRAP will be used to further strengthen the Group's stock and working capital
position across its various brands, as well as provide additional working
capital to fund the expansion into new channels such as KwikSales and
marketplaces such as Amazon and Temu.

 

As announced on 21 January 2026, early trials on the 'deal' sites such as
HotUKDeals and Latest Deals, and via marketplaces are very encouraging. The
initial trial on one of the 'deal' sites generated circa 900 orders, and circa
£40,000 of revenue at a margin, after all direct costs, fulfilment, postage,
packaging, and processing fees, of circa £5 per order, in under 24 hours.

 

On the marketplaces, we have started to add products for Discount Dragon to
Temu, and whilst it is still very early days, we are encouraged by the uptake
in both orders, and margin being achieved. Orders, on a very limited number of
SKUs, exceeded 650 in January 2026 and are growing, with a profit margin after
costs, of circa £3 per order. The early signs have given us the confidence to
add more products, more brands and more marketplaces such as Amazon, OnBuy,
and Ebay in the coming weeks

 

The addition of these new 'channels to market' is highly accretive to the
Huddled business model. On the deal sites, postage and packaging is included
in the offer, which is always for a single product, at a significant discount
to RRP, making both the decision to buy and the buying process relatively
easy.  The marketing of these offers is a variable cost, either a
cost-per-click, or a commission on sales, making the model highly scalable.
This, along with our ability to offer next-day delivery, ensures we are ranked
highly by their algorithms.

 

Martin Higginson, Executive Chairman of Huddled Group plc said:

 

 "The move to our new highly-automated fulfilment partner was always going to
be challenging, we are confident their automated solution will help us unlock,
and hone, the potential in our business model. The early signs across the new,
additional channels to market is very encouraging, and whilst there is still
much work to be done, we can clearly see that with more stock, and more
channels to market we can begin to grow the business.

 

"I would like to thank shareholders for the ongoing support. Using the WRAP
has also given us the ability to extend this funding to our private
shareholder base, allowing them to take part and protect their position."

 

Share Subscription

 

The Proposed Subscription is expected to complete in conjunction with the
completion of the WRAP and an announcement containing the final number of
issued Proposed Subscription shares and issued WRAP shares will be made as
soon as practicably. It is expected that a proportion of the Proposed
Subscription shares and WRAP offer shares will be satisfied using existing
authorities granted to the directors at the Company's General Meeting held on
8 August 2025, in the event the Proposed Subscription and WRAP are fully
subscribed the Company will convene a General Meeting to seek shareholder
approval to issue the remaining Proposed Subscription shares. Further details
of which will be announced in due course.

 

 

Debt Facility

The Company announces that on 5 February 2026, it entered into loan agreements
with Martin Higginson, a director of the Company, and with two other private
individuals (the "Loan Agreements") in relation to the Debt Facility.

The principal terms of the Loan Agreements are :

·      Principal total amount: £600,000 (of which Martin Higginson has
agreed to provide £300,000, with the balance of £300,000 split equally
between the two other parties)

·      Interest rate: 15% per annum

·      Interest payable monthly

·      Two year term

·      50% of the principal paid in equal monthly instalments in months
13-24 of the term, the remaining 50% payable on the second anniversary of the
Loan Agreement

·      Security: Secured by a debenture over Huddled Group plc on
standard market terms

·      Early repayment of the principal at the Company's option without
penalty

 

Related Party Transactions

The entering into of the Debt Facility, by Martin Higginson, a director of the
Company constitutes a related party transaction under the AIM Rules.

The directors of the Company (excluding Martin Higginson), having consulted
with Zeus Capital Limited, the Company's nominated adviser, consider that the
terms of the Debt Facility are fair and reasonable insofar as the Company's
shareholders are concerned.

(1)ordinary shares of 0.040108663 pence each in the Company ("Ordinary
Shares")

 

 

 Huddled Group plc                                       investors@huddled.com

 Martin Higginson

 Michael Ashley

 Daniel Wortley

 Paul Simpson

 Zeus (Nominated Adviser and Joint Broker)               Tel + 44 (0) 203 829 5000

 James Hornigold, George Duxberry (Investment Banking)

 Dominic King (Corporate Broking)

 Shard Capital LLP (Joint Broker)

 Erik Woolgar

 Damon Heath

 Alma Strategic Communications (Financial PR)            huddled@almastrategic.com

 Rebecca Sanders-Hewett

 Sam Modlin

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCLELLBQLLXBBX



            Copyright 2019 Regulatory News Service, all rights reserved