(Alliance News) - Joules Group PLC on Friday said it has raised GBP15 million after issuing new shares amid the Covid-19 crisis.
The country lifestyle retailer has placed 18.8 million shares at 80 pence each. The stock was trading 4.4% lower on Friday in London at 82.20p each.
On Thursday, Joules said it intended to raise GBP15 million through a placing to provide "sufficient" liquidity headroom amid the Covid-19 outbreak.
It noted the outbreak has had a "material impact" on business, adding it has already taken several mitigating actions to conserve cash amid a "significant" reduction in sales. Measures include all board members taking temporary salary reductions and the cancellation of its interim dividend.
Joules added Barclays Bank PLC has agreed to provide an additional GBP15 million headroom on the company's existing revolving credit facility for 12 months, on the condition the placing proceeds amounted to a minimum of GBP15 million.
"This placing will help Joules to deliver its long-term growth plans as well as supporting the business to successfully navigate through the current unprecedented trading environment," Chief Executive Nick Jones said on Friday.
By Ife Taiwo; ifetaiwo@alliancenews.com
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