Troubled food firm looking to raise an extra £1m from shareholders

Real Good Food

Troubled food ingredients firm Real Good Food is looking to raise a further £1m in funding on the Stock Exchange.

The company has also announced a general meeting will be held on August 1st in London for shareholders to consider its latest proposals.

There will be an open offer and the proceeds will be used to provide future working capital for the Liverpool firm.

Last month 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.

Hugh Cawley, chief executive, said: “We are pleased to launch the open offer today which allows all qualifying shareholders to participate in the refinancing of the company.

“The new funding arrangements we have put in place over the prior months of which the open offer and loan note peplacement are part, ensure that the Company will operate with a much more robust and sustainable financial platform, providing the certainty from which the board will be able to implement its plan to improve the group’s performance.”

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