Hotel Chocolat Group PLC (AIM:HOTC) has confirmed it is assessing funding options, including the possibility of an equity raise, following reports that it is looking to tap investors for around £30mln to fuel its growth plans.
The firm issued the response after a Sky News report on Thursday lunchtime said the firm is planning a share sale in the coming days and had been in discussions with its leading institutional investors.
READ: Hotel Chocolat upgrades profit forecast amid strong pandemic trading
If undertaken, the fundraise will be the second by the company since the pandemic started, with Hotel Chocolat having raised £22mln in March 2020 shortly before the UK entered its first lockdown.
The company seems to be aiming to accelerate growth amid an expected spike in sales as its core markets emerge from pandemic restrictions.
This expectation appeared to be backed up by a trading update earlier this month, which saw Hotel Chocolat say its profits for the year to June 27 are now expected to be “higher than previous expectations”.
The firm highlighted that sales for the 10 weeks from April 19 to June 27 were up 34% compared with the same period in 2019, and 63% compared with a year ago when all of its physical locations were shut during lockdown. It also reported that its UK customer base had grown by 66% to 3mln in the 18 months since December 2019.
In mid-afternoon trading on Thursday, Hotel Chocolat shares were down 3.4% at 352.5p.