(Alliance News) - Nightcap PLC on Wednesday announced a new fundraise which will allow the company to explore strategic acquisitions.
The London-based owner and operator of 46 premium bars proposed to raise up to GBP3.5 million via the issue of 70.0 million new shares at a price of 5.00 pence each.
Nightcap shares were up 11% to 4.28 pence each in London on Wednesday afternoon.
It follows a previous subscription of 15.0 million shares at the same price which raised GBP750,000.
Chief Executive Officer Sarah Willingham said: "A combination of businesses struggling with significant debt from the COVID period, ongoing macro-economic challenges from the cost-of-living crisis, and rail strikes have all escalated and accelerated the opportunity for consolidation, as we see a number of companies from across the sector considering their future strategic options.
"It is core to our strategy to be present in the conversations that will shape the late night bar sector in the UK as we approach the next economic cycle."
At the start of May, the Manchester-based Revolution Bars Group PLC revealed it held exploratory talks with Nightcap relating to the possibility of a takeover offer.
Nightcap must declare its intention to make an offer or not by the May 30 deadline.
By Elijah Dale, Alliance News reporter
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Nightcap (NGHT)
Rev Bars (RBG)