Loungers raises £8.3m through share placing
Loungers, which operates 167 Lounge and Cosy Club sites, has raised approximately £8.3m through a share placing yesterday.
9,250,000 new ordinary shares were placed through an accelerated bookbuild process and the company said the additional funds, when combined with its new bank facilities, provide it with sufficient capital to manage through the Covid-19 crisis and to subsequently recommence its roll-out.
Nick Collins, chief executive of the company, said: "Having continued to outperform our market immediately prior to lockdown, we are determined to emerge strongly from this period and rebuild that momentum.
"We have taken all the self-help measures open to us and are indebted to our teams for their ongoing support and engagement in the communities which they serve. Government support is welcomed and continues to be critical to us, and the wider hospitality industry, however it is imperative this is maintained throughout the reopening phase until consumer confidence rebuilds.
"With our newly agreed debt facilities and the successful equity fundraising, we are in a strong financial position with sufficient liquidity to come through this crisis and to take advantage of the opportunities that will emerge when restrictions are lifted."
Loungers is the latest hospitality business to look to a share placing to provide additional liquidity, following the likes of City Pub Group and The Restaurant Group in recent weeks.
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