13th May 2019 16:03
LONDON (Alliance News) - Escape Hunt PLC said Monday it has raised GBP4.0 million through the placing of 6.67 million shares at 60.0 pence per share.
The escape rooms company said earlier Monday that just over two thirds of placing proceeds will be used for the roll out of another 16 owned UK sites in the next three years and most of the remaining third will be used as working capital.
"The board is delighted with the ongoing support shown by existing investors and wishes to welcome new shareholders at this exciting time in the company's development," said Chief Executive Richard Harpham.
Shares in Escape Hunt were down 1.6% Monday afternoon at 60.00 pence each.
Earlier on Monday, Escape Hunt reported a pretax loss for 2018 of GBP10.0 million, more than twice its GBP4.1 million loss in 2017.
This was attributed to the GBP3.7 million amortisation of the intellectual property purchase made when the business itself, Experiential Ventures Ltd, was acquired back in May 2017. This compares to GBP2.4 million in 2017.
Before the acquisition, Escape Hunt was an investing company called Dorcaster PLC. The intellectual property is being written down over three years.
Other factors attributed to Escape Hunt's widened loss include GBP291,000 of exceptional costs relating to its Bangkok branch closure, plus a GBP2.3 million impairment charge for intangible intellectual property and goodwill. The latter charge relates to a decision to delay the UK roll-out in 2017 while the company rebranded. There were no such costs or charges incurred in 2017.
Revenue more than doubled to GBP2.2 million from GBP872,000.
So far in 2019 Escape Hunt has agreed detailed heads of terms with a US franchising partner to roll out new franchise sites in the US and Canada and is now generating positive earnings before interest, taxation, depreciation, and amortisation.
Related Shares:
ESC.L