Revolution Bars Group, operator of 66 premium Revolution and Revolución de Cuba bars, has raised approximately £21m through a share placing towards investing in both new and existing sites and reducing its debt.
Subject to the group's general meeting on 14 June, 105,001,866 shares are to be issued following the placing and open offer, at a price of 20p per share.
The group's net bank debt stood at £28.5m on 10 May, which the board said would limit its ability to invest in the refurbishment and expansion of its estate. Revolution said it would invest £11m of the money raised into strengthening its balance sheet and fund the costs of the fundraising, £2.5m in refurbishing its existing estate including 15 bars over the next 18 months, and £7.5m towards expansion.
Chief executive Rob Pitcher said: "Thanks to the support of our shareholders and new investors, this successful fundraising will allow Revolution Bars to emerge from this period of disruption in a strong position with a fit for purpose balance sheet which provides us with ongoing financial flexibility and an excellent platform from which to deliver for all our shareholders. We now have the firepower to deliver strong proven returns from the refurbishment of the remainder of our uninvested bars and the ability to take advantage of opportunities that undoubtedly will arise from a very dislocated market.
"We have traded outstandingly since the initial restrictions have been lifted. We are now looking forward to the end of all restrictions and are excited about the next part of the journey delivering best in class entertainment and hospitality to our guests."
The company voluntary arrangement (CVA) for subsidiary Revolution Bars last year resulted in the group exiting five loss-making sites, with a further site exited via the CVA in February. These were in addition to the surrender of two loss-making sites, the Revolution Liverpool Cavern Quarter and Revolución de Cuba Huddersfield.