Revolution Bars to raise £21m through share placing
Revolution Bars this evening said that it would raise £21m through a share placing in order to reduce its debt pile.
The hospitality firm, which operates 66 venues, said that the proceeds would position the company for further growth when bars are allowed to open normally again.
In a statement, it said that £20m will be raised through the firm placing of 100,000,000 new shares at the issue price of 20p per share.
A further £1m will be raised by placing 5,001,866 shares for qualifying shareholders.
Revolution Bars said the offer represented a discount of 41.2 per cent per share on yesterday’s closing price. The firm’s board said it would invest £137,500 in the raise.
It added that its net debt stood at £28.5m on 10 May, which it said was “at a level which will limit its ability to invest in the refurbishment and expansion of its estate”.
“The board has therefore decided to undertake the Fundraising in order to reduce the Group’s level of indebtedness, accelerate its existing site refurbishment programme and to take advantage of favourable market conditions for estate expansion”, it said.
It will put £7.5m into expanding its estate, as well as £2.5m into refurbishing an additional 15 bars over the next 18 months.