Revolution bars raises £21m as it eyes recovery
REVOLUTION BARS
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17:35 29/04/24
Revolution Bars has raised £21m of equity to reduce debt, refurbish its bars and expand as the pandemic eases.
The bar operator agreed to sell 105 million new shares to investors in a firm placing, placing and open offer at 20p per share - 41.2% less than the closing price on 24 May. The new shares will represent about 43.5% of Revolution's share capital when they start trading.
Revolution shares fell 30% to 23.10p at 08:48 BST.
After costs the company will raise £19.9m. It will use £11m to strengthen its balance sheet and pay for the fundraising, £2.5m to speed up its refurbishment plan and £7.5m to expand into new towns and cities. It predicted strong trading because of pent-up demand and higher household savings.
Ron Pitcher, chief executive, said: "Thanks to the support of our shareholders and new investors, this successful fundraising will allow Revolution Bars to emerge from this period of disruption in a strong position with a fit for purpose balance sheet.
"We now have the firepower to deliver strong proven returns from the refurbishment of the remainder of our uninvested bars and the ability to take advantage of opportunities that undoubtedly will arise from a very dislocated market."
Pitcher and three other directors have subscribed to buy 687,500 shares in total from the placing.