27th Mar 2018 17:10
The three main shareholders in Real Good Food, Napier Brown Ingredients Ltd, Omnicane International Investores Ltd and funds managed by Downing LLP, are providing the extra funds in the form of a draw-down loan note.
NB Ingredients and Omnicane will each provide
The interest is 10% per annum, payable quarterly in arrears.
Real Good Food plans to refinance the loan with new equity or convertible loan notes. If it does not, the shareholders will be entitled to payment of a penalty rate of interest, in cash, equivalent to 20% of the principal and interest due.
The premium baker's board considered alternative forms of funding but concluded those options were not suitable in the current timeframe and the loan notes were the most appropriate and flexible option to meet its short term cash requirements.
Hugh Cawley, chief executive, said: "Today's additional funding is an important part of meeting our short-term requirements, and further funding will be required for working capital and investment purposes in order to implement the group's business plan. The raising of these Loan Notes is part of the longer term funding plan being pursued by the group."
Shares in Real Good Food closed Tuesday evening down 6.3% at
Related Shares:
RGD.L