Real Good Food PLC (LON:RGF) told investors that it continues to explore the details of a proposed financing, which would include an issue of new equity.
In the meantime, a term sheet has been signed by the group’s three major shareholders - Napier Brown Ingredients, Omnicane International and funds managed by Downing LLP - which will now provide working capital to the company via a loan note facility.
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The loan facility is for £4mln, it carries 10% per year. The company said the funds relieve pressure on cash availability over the coming months, while it continues to work on the longer term arrangements.
"Today's additional funding is an important part of meeting our short-term requirements, and further funding will be required for working capital and investment purposes in order to implement the group's business plan,” said Hugh Cawley, Real Good food chief executive.
“The raising of these loan notes is part of the longer term funding plan being pursued by the group."