Time Out Group PLC (LON:TMO) has launched a placing and open offer to raise up to £49mln as it struggles though the coronavirus crisis.
The combined share issue, which is subject to shareholder approval, is being priced at 35p per share, a 12.5% discount the previous close price of 41p and less than a third of the level the shares started the year.
With advertising revenues down at its magazine and website during the pandemic - leading to their temporary rebranding as 'Time In' - and its six indoor markets closed during lockdown, the proceeds of fundraising will be used primarily for general working capital and to strengthen the balance sheet, the company said.
Completion of at least £45mln of the equity issue will also allow the amendment of the group's €22.6mln loan.
With £3.6mln of available cash as at 1 May 2020, the company said implementation of self-help measures and the loan restructuring should give it sufficient liquidity to operate for 14 months with its markets closed.
Oakley Capital Investments Ltd (LON:OCI) and associated funds, which together own 51.72% of Time Out Group, will subscribe for roughly £24.9mln of the placing, which will be used to repay in full a £20mln loan note.
Some of the remaining funds will be used for capital expenditure to continue developing the markets in new London Waterloo and Porto.
The shares fell 3% to 39.6p on Friday morning.