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(Alliance News) - On The Beach Group PLC on Wednesday raised GBP26.0 million via a share placing as the company recovers from extended lockdowns due to Covid-19.
The Manchester-based online retailer of beach holidays placed 7.9 million shares at a price of 330 pence per share to raise the funds.
The 7.9 million shares represent about 5% of issued share capital, and are at a 5.0% discount to the closing price on Tuesday, when the raise was first announced.
On The Beach shares sunk 6.9% to 232.50p each on Wednesday afternoon.
On Tuesday, the company said: "Given the extended disruption to international travel from the UK throughout 2021 and the ongoing trading environment across the sector, the board believes it is in the group's best interest to seek supplementary financing now."
At March 31, the company had a cash balance of GBP30.0 million, which excludes GBP24.1 million of customer monies held in a ring-fenced trust account and GBP11.8 million owing from airlines for forward refunding flights. The firm also has access to an undrawn revolving credit facility of GBP75 million.
"Whilst the actions taken by the group around cash management and credit facility negotiations have allowed it to continue to operate throughout the sustained disruption caused by the pandemic, the prolonged delay in the recovery of the UK travel sector has meant that the group's cash position has reduced to a level not foreseen at the time of the placing in May 2020," On The Beach Group said on Tuesday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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