Escape Hunt plc (LON:ESC) CEO Richard Harpham joins DirectorsTalk to discuss the successful completion of a placing announced only hours before. Richard explains what the proceeds will be used for, the short-term and long-term pipeline for new owner-operated sites, the significant opportunity to grow the franchise business in the US and Canada, the development of downloadable games and what investors can expect from Escape Hunt for the rest of the year.
Escape Hunt plc, a leading operator of escape rooms in the fast-growing experiential leisure sector, has announced the successful completion of the placing.
Capitalised terms used in this announcement and not defined herein shall have the meanings given to them in the Placing Announcement.
A total of £4.0 million (before expenses) has been raised:
· £3,494,999.85 by means of the Placing of 46,599,998 Ordinary Shares at 7.5 pence per Ordinary Share
· £165,000.15 by means of a Subscription of 2,000,002 Subscription Shares by certain Directors and 200,000 Subscription Shares by others at 7.5 pence per Ordinary Share
· £340,000 through the issue of Convertible Loan Notes
The Fundraising is subject, inter alia, to Shareholder approval being obtained at the General Meeting of the Company to be convened for 1 July 2020.
The Placing was conducted by way of an accelerated bookbuild process. Zeus Capital and Shore Capital acted as joint brokers on the Placing.
As outlined in the Placing Announcement, the net proceeds of the Fundraising will be used to fund the roll-out of further owner-operated sites, for operational improvements and for general working capital purposes.
The Directors (or their associates) have, in aggregate, invested £250,000.20 in the Fundraising by means of 2,000,002 Subscription Shares and 1,333,334 Placing Shares all acquired at the Issue Price.
The Advisor Equity is 1,333,333 New Ordinary Shares and is part of the Placing Shares.
Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is anticipated that Admission of the New Ordinary Shares will take place at 8.00 a.m. on 2 July 2020. The New Ordinary Shares will rank pari passu with the existing Ordinary Shares. The Placing Shares and the Subscription Shares, in aggregate, will represent approximately 64 per cent. of the Company’s enlarged share capital on Admission (assuming no Ordinary Shares are issued under the Open Offer).
Following Admission of the New Ordinary Shares, the Company’s enlarged share capital will comprise 76,152,035 Ordinary Shares (assuming no Ordinary Shares are issued under the Open Offer), all of which carry one voting right per share. The Company does not hold any Ordinary Shares in treasury.
The Placing Shares and the Subscription Shares are not subject to clawback and are not part of the Open Oﬀer. None of the Placing, the Subscription or the Open Offer is underwritten.