We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Real Good Food Plc | LSE:RGD | London | Ordinary Share | GB0033572867 | ORD 2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.45 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMRGD
RNS Number : 2269N
Real Good Food PLC
04 May 2018
Real Good Food plc
("the Company")
Terms agreed for new funding
The Company announces today that it has agreed terms for at least GBP8.2 million in new financing arrangements with the Company's three major shareholders, Napier Brown Ingredients Limited ("NB Ingredients Ltd"), Omnicane International Investors Limited ("Omnicane"), and certain funds managed by Downing LLP ("Downing") subject to finalisation of standard documentation.
This follows our previous statements, most recently in an announcement on 27 March 2018, that the Board had identified the need for further substantial additional funding for working capital and investment purposes to implement the Company's business plan. In addition, the Company is due to pay the final tranche of consideration due to the vendors of Brighter Foods of approximately GBP4.5 million ("Deferred Consideration") later this month, as previously detailed in the announcement of the acquisition of Brighter Foods on 5 April 2017.
The financing arrangements will not only fund this GBP4.5 million Deferred Consideration, but also provide a maximum of GBP4.2 million to fund the Company's foreseeable working capital needs, including for the build-up of inventory in advance of the Group's third quarter in October to December, which is typically its busiest.
The funding described above is to be provided by means of secured loan notes, with an annual coupon of 12% from the three major shareholders (the "Shareholder Loans").
It is intended that the Shareholder Loans will be replaced by convertible loan notes (the "Replacement CLNs") in due course, with the issue of such Replacement CLNs being subject to a whitewash process pursuant to Rule 9 of the Takeover Code. The conversion price of the Replacement CLNs is expected to be 5 pence, significantly lower than the Company's current share price. The Shareholder Loans will carry a redemption premium payable on any repayment which, when added to interest already received, will generate a total annualised return of 30%. In the event of conversion of the initial principal amount, then no redemption premium will be payable.
These terms are reflective of the severe financial challenges the company has faced over the last twelve months. In the current board's view, historically poor controls and governance have contributed to poor performance in all divisions, and the issues have been exacerbated by disruption caused by the delays in implementation of complex investment programs. Without this funding the Directors believe that there is a significant risk that the Company would fail to be able to trade. However, the new management team have begun to address these historic issues and the Board believes that a turnaround of the business is now underway and this additional financing will allow the Company to meet its obligations and trade without working capital constraint.
The Board considers that a fundraising by way of the Shareholder Loans is the most appropriate route for the Company to raise the capital it needs in the timescale available.
As each of NB Ingredients Ltd, Omnicane and Downing are substantial shareholders of the Company and have Board representation, each of the Shareholder Loans, once agreed will be deemed to be a related party transaction pursuant to the AIM Rules for Companies.
Further announcements will be made in due course.
The information communicated in this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
Real Good Food plc Tel: 020 3857 3900 Hugh Cawley, Chief Executive Harveen Rai, Finance Director finnCap Limited (Nomad Tel: 020 7220 0500 and Broker) Matt Goode / Carl Holmes (Corporate Finance) MHP Communications (Financial Tel: 020 3128 8100 PR) rgf@mhpc.com Reg Hoare / Katie Hunt About Real Good Food Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Company focuses on three main markets: Cake Decoration (Renshaw and Rainbow Dust Colours), Food Ingredients (R&W Scott and Brighter Foods) and Premium Bakery (Haydens and Chantilly Patisserie).
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBSGDUBSGBGIS
(END) Dow Jones Newswires
May 04, 2018 10:43 ET (14:43 GMT)
1 Year Real Good Food Chart |
1 Month Real Good Food Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions