1st Nov 2018 12:24
LONDON (Alliance News) - Struggling cafe chain Patisserie Holdings PLC said it has secured shareholder backing to raise GBP15.7 million via a share issue.
The company was forced to raise new funds following revelation of a GBP20 million blackhole in its accounts due to potentially fraudulent accounting irregularities. It also separately has raised GBP20 million through loans from Executive Chairman Luke Johnson to stay afloat.
At the company's general meeting on Thursday, 99.68% shareholders approved the resolution for the company to place new shares.
Earlier, the company said it will be unable to answer specific questions on the financial misstatements at its annual general meeting due to ongoing regulatory probes.
The company said it is continuing to work with advisers to understand the extent of the financial misstatements and potential fraudulent activity. It also said it is not in a position to advise on when its stock trading suspension will be lifted, due to the ongoing review of its financial statements.
Trading in the AIM stock was suspended last month after the company revealed the hole in its accounts.
Finance Director Chris Marsh was suspended due to the accounting irregularities. He was arrested and released on bail. Marsh has since resigned from Patisserie.
The UK Serious Fraud Office separately said it was investigating an unnamed individual connected to Patisserie Holdings.
Related Shares:
Patisserie Holdings Plc