Nightcap launches fundraising to fuel expansion plans
The news comes as Nightcap boss Sarah Willingham intends to position the group as ‘the preferred consolidator’ in the premium bar sector
Nightcap has started a proposed fundraising of up to £3.5m before expenses via the issue of up to 70 million new ordinary shares of 1p each in the company at a price of 5p per new ordinary shares.
The news comes as Nightcap boss Sarah Willingham intends to position the group as “the preferred consolidator” in the premium bar sector.
By fundraising, Willingham says Nightcap will continue its efforts to create the UK’s “leading” bar group.
The group has already raised £0.75m before expenses through a firm subscription for 15 million new ordinary shares at the issue price.
In addition to the subscription, the bar operator has received further expressions of interest in participating in the fundraising and intends to continue its fundraising activities in the coming weeks.
According to the group, it will make further announcements in relation to this part of the fundraising in due course.
Along with the fundraising, Nightcap’s board will consider raising additional capital that will be subject to any future potential transactions.
Nightcap is due to convene a general meeting with its shareholders to grant the directors the authority to issue and allot the new ordinary shares pursuant to the fundraising for cash and otherwise than on a preemptive basis.
Sarah Willingham, CEO of Nightcap, said: “We believe that a once in a generation opportunity currently exists in the late night bar sector to create a substantial market leading group of the most popular and much loved late night bar concepts.
“A combination of businesses struggling with significant debt from the Covid period, ongoing macro-economic challenges from the cost-of-living crisis, and rail strikes have all escalated and accelerated the opportunity for consolidation, as we see a number of companies from across the sector considering their future strategic options.”
She added: “Over the last 18 months, we have built a robust and professional management and leadership infrastructure at Nightcap and our team is capable of doubling the number of bars that it manages without the need for Nightcap to make significant further investment.”
