logo-loader

Revolution Bars launches fundraising, takes steps down to AIM

Published: 07:37 05 Jun 2020 BST

Revolution Bars -

Revolution Bars Group PLC (LON:RBG) has launched a £15mln fundraising and move from the main market to AIM to prepare for life after the coronavirus lockdown.

The operator of 74 bars under the Revolution and Revolución de Cuba brands aims to raise £9mln from a firm placing of shares with institutional investors at 20p apiece. 

A further placing of up to £6mln will be sought, but subject to clawback depending on the uptake of a simultaneous open offer.

“Prior to the onset of the COVID-19 pandemic, the group was demonstrating signs that the turnaround strategy put in place by the board was successful,” the company said, pointing to improvements in sales and profit reported in February’s half year results.

Over last year net bank debt had been cut to £8.4mln from £14.8mln but has since ballooned to £22mln as of 26 May, within a secured debt facility of £37.5mln.

With almost 99% of staff furloughed, the board taking 50% pay cuts and the UK government's current guidance is that pubs and bars will be closed until at least July 4, the group is assuming it will reopen its estate in August and generate sales in that month of approximately 55% of the previous level, increasing to around 80% by November as social distancing measures are relaxed.

It is expected that the fundraising proceeds will be received by the company following admission to AIM on July 27.

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

12 hours, 56 minutes ago