(Alliance News) - Joules Group PLC on Thursday said it intends to raise GBP15 million through a placing to provide "sufficient" liquidity headroom amid the Covid-19 outbreak.
The British country lifestyles retailer said the outbreak has had a "material impact" on its business, adding that it has already taken several mitigating actions to conserve cash amid the "significant" reduction in sales. Measures include all board members taking temporary salary reductions and the cancellation of its interim dividend.
Joules said the placing is being conducted through an accelerated bookuild process with Peel Hunt LLP and Liberum Capital Ltd acting as joint bookrunners.
It added that 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 that the placing proceeds amount to a minimum of GB15 million.
All directors have agreed to participated in the placing, and have subscribed for shares worth a total of GBP1.2 million.
Joules stock closed 1.2% lower at 86.00 pence each on Thursday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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