City Pub Group raises £22m through share placing

16 April 2020 by

City Pub Group has raised around £22m through an oversubscribed share placing which the group announced late last month.

The company confirmed it has raised £15m through the issue of 30 million new ordinary shares under the placing, and £7m through more than 14 million new ordinary shares taken up under the open offer.

Executive chairman Clive Watson (pictured) said: "We are delighted with the oversubscribed take up of the open offer demonstrating strong support from existing holders in addition to welcoming new shareholders over and above the oversubscribed £15m placing. The net effect of the money raised is that the balance sheet has been significantly strengthened with net debt cut by two thirds.

"We continue to run the business tightly, seeking to reduce the cash burn rate further and negotiations continue with the landlords of our leasehold pubs. We continue to be grateful to all stakeholders in the company at this challenging time and it is our goal to ensure that we take advantage of the strong position we now have when the current restrictions are lifted."

City Pub Group to 'rein in' expansion programme over Brexit uncertainty >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking