(Alliance News) - Arena Events Group PLC on Thursday said it has conditionally raised GBP9.5 million via a 60.0 million share subscription and 35.0 million share placing both priced at 10 pence per share.
Shares in Arena Events were up 5.2% at 10.52 pence in London in midday trading.
On top of this the company - which provides temporary physical structures, seating, furniture, and ice rinks - has obtained approval from lender HSBC to drawdown an additional GBP4.8 million from its existing loan facilities.
With the GBP9.5 million fundraise plus the additional credit facilities available, Arena Events said it thinks it should have enough working capital "for the foreseeable future".
Shareholder approval for the subscription and placing are required. Cenkos Securities was nominated broker and advisor.
Chief Executive Officer Greg Lawless said: "We have been working tirelessly to implement plans to limit the human, financial and commercial consequences of this terrible health disaster on all Arena stakeholders. We have initiated significant cash conservation initiatives across all divisions of the group, whilst ensuring the health and safety of all our employees to secure the long term future of the group.
"These initiatives have significantly reduced the group's future monthly cash outflows which together with the additional financial support from our shareholders and our lending bank puts the group in a strong financial position to weather the very difficult current market environment.
"We continue to work with all our customers in relation to events scheduled to take place after May in order to mitigate the possible financial and operational impacts in the case further events are cancelled."
By Anna Farley; annafarley@alliancenews.com
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