The City Pub Company has announced the successful completion of £22m in fundraising in efforts to shore up cash amid the ongoing pandemic.
The group had previously announced its intention to raise the funds on 27 March, seeking a proposed placing to raise £15m and an open offer to raise up to a further £7m.
To do so, it sought to issue up to 44,015,634 new ordinary shares at an issue price of 50 pence per share.
Following its latest general meeting, the company was “pleased to announce” that the fundraising has been successful.
The group confirmed that it will now issue the 44,015,634 shares that will raise approximately £22m.
Clive Watson, executive chairman, said: “We are delighted with the oversubscribed take up of the Open Offer demonstrating strong support from existing holders in addition to welcoming new shareholders over and above the oversubscribed £15m placing.
“The net effect of the money raised is that the balance sheet has been significantly strengthened with net debt cut by two thirds.”
He added: “We continue to run the business tightly, seeking to reduce the cash burn rate further and negotiations continue with the landlords of our leasehold pubs.
“We continue to be grateful to all stakeholders in the company at this challenging time and it is our goal to ensure that we take advantage of the strong position we now have when the current restrictions are lifted.”