The City Pub Group receives strong support for placing raising £15m
30 March 2020The City Pub Group announced that, following the announcement on Friday morning, it has received strong demand from existing Shareholders and other institutional investors and it has successfully placed 30,000,000 new ordinary shares at a price of 50 pence per share, raising gross proceeds of £15 million under the Placing.
Liberum Capital Limited acted as sole bookrunner on the oversubscribed Placing.
Clive Watson, Executive Chairman of the Company, said: “We are delighted with the investor support we have had at this difficult time. Together with our existing funding arrangements, this significantly strengthens our balance sheet providing a further cushion in the event the suspended environment is extended. The additional funds will also allow improvements to our operational structure during the period of closure and enable us to grow the business and recover shareholder value once pubs are permitted to reopen.
"We recognise the great support we have had from our people, suppliers, bankers, brokers and advisers and also from Government through its aid package especially regarding employment costs and business rates."
As announced on Friday, the Company also intends to raise up to approximately £7 million through the issue of 14,015,634 new Ordinary Shares pursuant to an open offer, to allow Shareholders, including those who are not participating in the Placing, to subscribe for new Ordinary Shares at the Issue Price. The terms and conditions of the Open Offer will be set out in the Circular, which will be posted on 30 March.