Troubled baking ingredients firm looks to raise £1m from investors

Troubled baking ingredients firm Real Good Food has announced plans to raise £1m in funding from an open offer of shares.

The Liverpool firm announced in May that it had agreed terms for at least £8.2m in new financing arrangements.

At the time the directors said the deal more than likely saved the company from collapse.

Funding came from its three major shareholders – Napier Brown Ingredients, Omnicane International Investors, and certain funds managed by Downing LLP.

Following the agreement the firm is now looking to raise further funding.

A statement has been made to the Stock Exchange.

It read: “The board of Real Good Food announces its intention to launch an Open Offer for up to £1.0m, for qualifying shareholders to subscribe for new ordinary shares of 2p each in the capital of the company at a price of 5p per Ordinary Share.

“It is intended that the Open Offer be announced contemporaneously with the whitewash process pursuant to Rule 9 of the Takeover Code, arising from proposed issuance of Replacement Convertible Loan Notes as outlined in the company’s announcement on 17 May 2018 and will be conditional upon completion of that transaction.

“The major shareholders of the group (being Napier Brown Holdings, Omnicane and certain funds of Downing LLP) do not intend to take up their entitlement under the Open Offer.

“The proceeds of the Open Offer allows all qualifying shareholders to participate in the refinancing of the company whilst also providing the Ccompany with additional working capital headroom.”

The firm is in the process of appointing two independent non-executive directors.

Hugh Cawley, chief executive of Real Good Food said: “Having recently completed our new financing arrangements with the company’s three major shareholders, the board recognised the importance of enabling all shareholders to participate in the refinancing of the company and is therefore intending to launch the Open Offer accordingly.”