29th Aug 2018 16:43
LONDON (Alliance News) - Richoux Group PLC said Wednesday is has raised GBP1.1 million through an 18.2 million share subscription at a price of 6.0 pence per share.
The restaurant operator announced the subscription earlier that day, and revealed that it is in negotiations to enter into a sale-and-leaseback of one of its central London restaurant properties. The sale is expected to raise GBP1.4 million.
Both the subscription and the sale form part of Richoux's cost reduction and refinement plan as the company attempts to counteract a tough market and a number of temporary restaurant closures due to refurbishment.
For the first six months of financial 2017, Richoux reported a pretax loss of GBP1.1 million on revenue of GBP5.6 million but expects to reduce interim losses this year.
Shares in Richoux were untraded at 7.00 pence on Wednesday.