Dialight, the U.K. lighting company, has unveiled its transformation plan, which includes divesting non-core assets and businesses. As a result, the company’s shares have experienced a 15% decline.
The board of Dialight has been closely reviewing its funding position to ensure that it can effectively invest in its core workstreams. However, the exact timing and terms of the potential divestments remain uncertain.
To further de-risk and accelerate the implementation of its transformation plan, Dialight is also exploring an equity fundraise. Nevertheless, the company emphasizes that there is no guarantee that this fundraise will proceed or what terms it may entail. More updates on the group’s financing strategy will be provided as necessary.
Dialight has conditionally agreed to adjust the interest cover covenants over its $34 million revolving credit facility with HSBC. This move demonstrates the company’s commitment to optimizing its financial arrangements.
In conclusion, Dialight is taking strategic steps to enhance its focus on core operations by divesting non-core assets. The potential equity fundraise aims to support the transformation plan. As Dialight continues to navigate these changes, investors and stakeholders can expect further updates on its financing strategy.
