17th Apr 2020 13:55
(Alliance News) - Hollywood Bowl Group PLC on Friday said it has raised GBP10.9 million through the placing of 7.5 million shares at 145 pence each.
The placing price represents a premium of 1.4% to the Thursday closing price of 143p. Shares in the ten-pin bowling operator were 10.5% higher at 157.92p each on Friday afternoon in London.
Substantial shareholder Aberdeen Standard Investments subscribed for 828,022 placing shares for GBP1.2 million.
Members of the executive team subscribed for 63,442 of the placing shares, with Chief Executive Stephen Burns subscribing for 11,034 shares, taking his total stake to 2.1%.
Following admission, Hollywood Bowl's issued share capital will comprise 157.5 million shares.
The new cash will be used to strengthen the company's balance sheet, working capital and liquidity position, the company said.
Hollywood Bowl said that since the closure of all its venues in March, it has implemented cash conservation measures such as delaying all discretionary spend, taking advantage of government schemes, and reaching agreements with landlords to defer payments. The company said that as a result of measures taken, it expects a monthly net cash burn of around GBP1.6 million while all venues remain closed.
"The funds raised today will further strengthen our balance sheet which we believe will enable us to emerge from this period of significant disruption in a robust financial position. In addition to our existing funding arrangements and the management actions to preserve cash, and continuing to support our team members throughout the centre closure period, we believe we are well placed to act on any strategic opportunities to strengthen the business as we emerge from the Covid-19 crisis," Burns said.
By Ife Taiwo; [email protected]
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