News blog
Eclectic Bar Group
- BY: Andrew Hore |
- POSTED: 15/06/2015 |
Late night bars operator Eclectic Bar Group says trading remains difficult and it needs to cut its costs but the arrival of Luke Johnson on the scene has sparked investor interest.
Despite the negative news, the share price jumped by 14p to 62.5p. This is because of the news that Luke Johnson is subscribing for shares. The placing at 50p a share, a premium to the previous market price, will raise £1.65m with Johnson subscribing for £1.5m worth of shares. The other shares are being acquired by the chief executive and finance director. Chief executive Reuben Harley will own 12.4% and finance director John Smith 7.7%.
Johnson has joined the board but he will not take a salary. Instead, he has been issued 1.62 million warrants exercisable at 60p a share. The warrants can be exercised in two tranches up until the end of June 2019. If these warrants are exercised Johnson will own 25.9% of Eclectic.
This has all prompted the rise in the share price but the underlying trading is still a concern. Openings in Sheffield and Liverpool have been postponed. A poorly performing site in Norwich has been sold.
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