Revolution Bars to raise £15m in placing to weather Covid
Revolution Bars said on Friday that it will raise £15m to help it weather disruption from the Covid-19 pandemic.
The company, which trades under the Revolution and Revolución de Cuba brands, is looking to raise the money by way of a placing and a placing and open offer at 20p per new ordinary share. The price represents a 42% discount to the closing share price on Thursday.
"The proceeds of the fundraising will be used by the group to achieve an appropriate level of indebtedness and emerge from the Covid-19 pandemic in a position of strength," it said. "The net proceeds of the fundraising will be used primarily to reduce the group's financial gearing."
It will raise up to £9m through a firm placing of up to 45m shares and up to £6m in a placing of up to 30m shares.
Revolution’s 'base case' scenario is that it will be able to reopen its estate in August. In its ‘downside’ scenario, the company will be not be able to reopen its estate until November.
The base case assumes it will deliver sales in August at around 55% of the prior year comparable period, with only marginal improvement in September 2020 and October 2020.
The downside scenario assumes it will deliver sales in November at approximately 75% of the same period a year ago, as the company expects social distancing measures to be "significantly reduced" by this time.
At 1200 BST, the shares were down 24% at 26.20p.