Shares in Revolution Bars Group PLC (AIM:RBG) climbed off the floor on Thursday after the operator of Revolucion de Cuba and Peach gastro pubs said it has support for a fundraising of at least £10.5 million to carry out a restructuring plan.
"All the strategic options available" were considered, it said and concluded this was the best option for the company, with a potential sale of the business also still being explored to see if this could glean better returns.
A firm placing and subscription to raise £10.5 million is being supported by several cornerstone investors.
Entrepreneur Luke Johnson is contributing £3 million, a further £3 million is coming from Robus Capital Management and £3.5 million from three key existing shareholders.
A placing and open offer will follow of up to £2 million. Both will be priced at 1p per share and are conditional on approval of the restructuring plan.
Johnson, the former chair of Pizza Express and the collapsed Patisserie Valerie will join the board as a non-executive director and become chairman at the company's annual general meeting in 2024.
Simultaneously, a formal sale process is also being launched "in order to explore whether a potential sale of the company or any of its business, assets and/or subsidiaries would provide a better outcome for stakeholders than the restructuring plan".
Shares were suspended last week due to delayed publication of interim results, which were published overnight, showing improved sales of £72.3 million and a swing to a pre-tax profit of £3.1 million compared to a small loss a year earlier.
On Thursday the shares were changing hands for 1.44p, down by around three quarters since the start of the year.