London Stock Exchange welcomes Eclectic Bar Group plc (”Eclectic”, “the Group” or “the Company”) to AIM
Eclectic Bar Group plc is pleased to announce the commencement at 08.00 UK time this morning of dealings in its Ordinary Shares on AIM, a market operated by the London Stock Exchange plc.
Eclectic is one of the leading operators of premium bars in the UK, with a portfolio of 20 sites across major towns and cities, predominantly targeting a customer base of sophisticated students midweek and young professionals at weekends, as described in the Admission Document published by the Company on 20 November 2013.
The Company focuses on delivering added value for its customers, with premium product ranges, high-quality music and entertainment, and a commitment to high service levels and standards. The Group trades across its estate under a variety of brands, including Embargo 59, Lola Lo, Sakura, Po Na Na and Fez Club.
Eclectic has raised £10.5 million before expenses, issuing 6,562,500 new ordinary shares at 160 pence per share. Following the placing, the Company has 12,862,500 ordinary shares in issue at admission, giving an estimated market capitalisation at the placing price of £20.6 million.
The proceeds of the placing will be used to repay a shareholder loan owed to Avanti Capital plc (AIM: AVA) (“Avanti”) of approximately £7.3 million. The 2,835,861 Ordinary Shares held by Avanti have been sold at the placing price pursuant to the placing for approximately £4.5 million enabling Avanti to sell down completely its shareholding in the Company. The additional proceeds will be used to fund a strategic growth plan of enhancing profitability at existing sites and, if necessary, development of new sites.
Panmure Gordon acted as Nominated adviser and broker to Eclectic and College Hill acted as financial public relations adviser to Eclectic.
Reuben Harley, Chief Executive, said:
“We have been delighted with the support we have received from investors resulting in the funds being raised.
“We believe AIM will provide us with an excellent platform for growth, particularly with a larger free float and a supportive institutional shareholder base. We now have an optimum capital structure and experienced management team to continue to grow the business.”