Real Good Food £1m share offer overscubscribed

Real Good Food

Troubled food ingredients firm Real Good Food has raised £1m in a new share issue, which it said was oversubscribed

Last month it launched plans for an open offer, saying the proceeds would be used to provide future working capital for the Liverpool firm.

Today Real Good Food confirmed it has raised gross proceeds of £1m, which it said “was heavily oversubscribed”.

It intended to raise the cash through the issue of 20,115,190 ordinary shares.

The open offer closed for acceptances at 11am yesterday, and the company said it had received valid acceptances, including those received under an excess application facility, in respect of 29,984,154 ordinary shares from qualifying shareholders.

This represents demand for approximately 149% of the offer shares.

Qualifying shareholders will receive their application in full, and those who have validly applied for excess shares will receive approximately 60.78% of their application on a pro rata basis.

The open offer remains conditional on all resolutions being passed at a general meeting to be held at 11am next Monday, August 13, and admission to the stock exchange, which it said should become effective on August 17.

In June the cash-strapped firm finalised an “amendment deed” with shareholders to extend the final repayments on loans to the end of June 2020.

Real Good Food alerted markets in January that it needed more cash over the next 12 months to fund working capital and investments and that “further substantial additional funding” would be required to implement its business plans.

The owner of brands including Renshaw and Haydens has had a diffiuclt 12 months with two profit warnings, the departures of the company’s executive chairman and finance director and the launch of an external review into its corporate governance.

Close