Revolution Bars Group has raised gross proceeds from fundraising of approximately £12.5m.
The investment is part of previously announced plans to raise new funding by way of a firm placing, subscription, placing and open offer, all at an issue price of 1 pence per new ordinary share.
The fundraising remains conditional on the approval by shareholders of the fundraising resolutions at the company’s general meeting, which has been postponed and is now expected to be held on 20 May 2024.
The company will announce the results of the general meeting as soon as practicable after the meeting concludes.
It was previously intended that Will Tuffy, a non-executive director of the company would subscribe for 360,000 new ordinary shares via the open offer.
Tuffy has instead entered into a subscription agreement with the company in relation to the subscription of 360,000 new ordinary shares, conditional upon, inter alia, completion of the fundraising.
As an alternative to the potential restructuring plan, the company launched a formal sale Process on 10 April, to explore whether a sale will provide a more beneficial outcome for stakeholders.
In addition, the Company is also still exploring whether a sale of one or more of the company’s subsidiaries, or the business and assets of one or more of the company’s subsidiaries will provide a more beneficial outcome for stakeholders than the restructuring plan.
Serial sector investor Luke Johnson was previously named as a cornerstone investor in the open offer.
Earlier this month, Revolution Bar Group revealed more details of its restructuring plan and future strategy.
The plan affects Revolution Bars Limited (RBL), which holds 38 Revolution branded sites, one Playhouse site and one Founders & Co site.
It will focus on exiting leases of loss-making sites and implementing rent reductions to restore profitability.
This is currently anticipated to be 18 sites, of which six are already closed.
A rent reduction on certain sites is currently expected to be 14 sites.
The strategy aims to return the company to profitability by improving EBITDA, reducing debt, and enabling a recommencement of the refurbishment program.
Following the restructuring, the company plans to execute a strategic focus for the next three financial years.
This includes maximizing CRM databases, enhancing brand propositions, reducing leverage, and exploring expansion opportunities across its brands.
The board sees growth potential in expanding Peach Pubs, Founders & Co, and Revolucion de Cuba sites.
Specifically, Peach is currently seeing a number of high-quality investment opportunities in the leasehold food-led pub market, either as single site or multi-site portfolio expansion opportunities.
A key focus is on locations in prosperous towns such as Winchester, Bristol, Bath, Cheltenham, Worcester, and Brighton.
