Real Good Food PLC Additional Funding (9821G)

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RNS Number : 9821G

Real Good Food PLC

21 November 2022

21 November 2022

Real Good Food plc

("RGF" or "the Group")

Additional Funding

Real Good Food plc (AIM:RGD), the food manufacturing business specialising in cake decoration, announces that it has secured an additional GBP2.5 million in funding to support its turnaround. This is further to the Trading Update issued on 30 September 2022 in which the Group indicated it was in advanced discussions to secure additional funding.

The new funding is being provided by Hilco Private Capital for a term of twelve months and supplements the existing GBP6.3 million facility with Leumi ABL. As a consequence, no new Loan Notes will be issued. The funding ranks behind the existing Leumi ABL facility and ahead of the Loan Notes in security. The blended interest rate for third party funding is expected to be 12.1%, based on current market rates.

Mike Holt, Executive Chairman, commented:

"We are delighted that new funding has been secured to support the radical reform of RGF which is intended to reduce costs, protect revenues and preserve the inherent value of the Group. With support from both customers and employees, we are making good progress on the required reforms and several major customers have already agreed to significant price re-sets. We are confident that the right actions are being put in place to return the business to sustainable profitability and being cash generative.

I am particularly pleased that Leumi ABL continues to support the Group and that Hilco has provided the new funds required. I would also like to thank our suppliers for their forbearance over recent months pending this funding being secured."

Enquiries:

 
Real Good Food plc                                Tel: [phone] 
 Mik e Holt, Executive Chairman 
 
finnCap Limited (Nomad and Broker)                Tel: [phone] 
 Carl Holmes / Abigail Kelly (Corporate Finance) 
 
MHP Communications (Financial PR)                 Tel: [phone] 
 Reg Hoare / Katie Hunt                            [e-mail] 
 

About Real Good Food

Real Good Food plc is a food manufacturing business specialising in Cake Decoration; it serves several market sectors including retail (own label and private label), manufacturing and export, and operates under two brands, Renshaw and Rainbow Dust Colours. http://www.realgoodfoodplc.com.

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November 21, 2022 02:00 ET (07:00 GMT)