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LONDON (Alliance News) - Tasty PLC said Friday it is hoping to GBP3.3 million via firm placing and open offer as the restaurant operator warns of a "challenging" 2019.
Tasty - which operates 57 restaurants in the UK under the brands Dim-t and Wildwood - is proposing a conditional firm placing to raise GBP3.0 million through the issue of 75.0 million shares to new and existing institutional shares at 4.0 pence per share.
The company is also proposing an open offer to raise about GBP250,000 through the issue of 6.3 million to qualifying shareholders, also priced at 4.0p. Qualifying shareholders will be able to apply for two open offer shares for every 19 existing shares.
Shares in Tasty were down 16% Friday at 4.99p each.
The company said the proceeds will be used to pay down its debt and for general working capital purposes.
"This is an important fundraise for Tasty as it will enable us to continue our strategic plans with vigour. We are delighted with the level of investor support for the placing and we would like to thank our shareholders for their continued support," said Chair Keith Lassman.
The company added: "Market conditions have become increasingly challenging throughout the year and the board's expectation is that there will be no significant improvement in 2019. Accordingly, the company intends to focus on sales and cost control to ensure that the impact of the challenging economic environment is minimised."
Tasty said it has no plans to open any new restaurants in 2019 and instead continue to monitor its "underperforming sites". The company expects to makes further disposals in the year "if and when appropriate".
