£21m fundraise for Revolution Bars will lift it out of debt
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Revolution Bars has successfully raised £21m through a share placing in order to reduce its debt pile.
The hospitality firm, which operates 66 venues, announced the share placing last month and said that the proceeds would position the company for further growth when bars are allowed to open normally again.
In an update this morning, the Tameside headquartered group said 105m shares will be issued at 20p per share following shareholder approval today.
The group said it has seen a strong appetite from customers but the COVID-19 pandemic has resulted in a significant increase in the group’s indebtedness, notwithstanding the measures taken by management to reduce costs and cash burn during a period of significant disruption to the business, including several extensive periods of estate closure during Government-enforced lockdowns, and the support provided by shareholders via the equity fundraising completed in July 2020.
The group’s net bank debt stood at £28.50m as at May 10, 2021, which the board said was at a level which will limit its ability to invest in the refurbishment and expansion of its estate.
The board decided to undertake the fundraising to reduce the group’s level of indebtedness, accelerate its existing site refurbishment programme and to ‘take advantage of favourable market conditions for estate expansion.’