Café and restaurants operator Richoux Group is raising £4m at 16p a share.
Related shareholders, including Jonathan Kaye and Philip Kaye will retain a combined stake just short of 79%.
There was cash of £3.86m at the end of 2016. There was little cash generated from operations and capital investment in new sites was partly financed by share issues. Even before impairment write-offs, Richoux swung from profit to a loss and the NAV was more than halved to £3.94m at the end of 2016.
There were 18 restaurants (Richoux, Dean’s Diner, Villagio and Friendly Phil’s) at the end of 2016. The main focus is Richoux and American diner Friendly Phil’s and refurbishing and rebranding existing sites. Management warned that they would require additional cash for this investment and it is unclear if there will be any left for investment for new sites.
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