Shares of Edinburgh-based ready meals firm Parsley Box Group plc rose about 20% on Thursday after it announced a proposed equity fundraising of £5.9 million via a placing at 20p a share and an open offer to qualifying shareholders to raise up to £1.1 million.

“The company’s directors and associates intend to participate, in aggregate, £4.2 million of the fundraising,” said Parsley Box.

“The issue price represents a premium of approximately 11.1 per cent. to the closing share price on 9 March 2022 (being the latest practicable date prior to this announcement).

“The fundraising is not being underwritten.”

Parsley Box, which serves the “Baby Boomer+” demographic,  joined the stock market in March last year at £2 per share but the firm has suffered a torrid first year as a public company with its shares down almost 90%.

On Thursday, Parsley Box shares rose about 20% to 22p.

Parsley Box said the proceeds of the fundraising will be used on targeted new customer acquisition, developing a membership program to start a customer community, product development “for food, food + and beyond food strategy” and on open offer funds “which will be used to strengthen the balance sheet and general working capital to support a 4-year-old scale up business.”

The net cash proceeds of the fundraising will be £5.6 million.