A placement that raised £ 21million for Revolution Bars Group left a bitter taste in your mouth as shares fell more than 28%.

The group, which operates Cuba’s Revolucion and the Revolution-branded bar and restaurants, said the money raised would give it “firepower” as restrictions on trade continued to lift.

He said he would use the money to reduce debt and “take advantage of the opportunities that will undoubtedly result from a very dislocated market.”

The group, which operates 66 outlets, said its net bank debt stood at £ 28.5million, which it said was “a level that will limit its ability to invest in refurbishment and l ‘expansion of its domain “.

© Courtesy of SCAA – Graeme Hart, Per
Revolucion De Cuba on Belmont St Aberdeen. Photo by Paul Glendell

Part of the proceeds – £ 2.5million – will be used to refurbish 15 bars over the next 18 months, while an additional £ 7.5million will be set aside to ‘expand its domain, on a site-selective basis. by site, in new cities and regions. “.

Rob Pitcher, CEO of the bar group, said: “Thanks to the support of our shareholders and our new investors, this successful fundraising will allow Revolution Bars to emerge from this period of upheaval in a strong position with a suitable balance sheet. to his needs. provides us with continued financial flexibility and an excellent platform from which we can provide all of our shareholders. “

The company said it was “thrilled” with the performance of the 20 bars within the group that have reopened since trading restrictions began to ease as they “significantly exceed expectations.” These were able to provide nearly half (48%) of sales in the four weeks after the lockdown began in April, during the same period in 2019 – although they represent only 15% of their capacity, the group said.

The issue price represented a discount of approximately 41.2% from the Monday closing price.

Shares closed 27% lower at 24p.

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