LONDON (ShareCast) - (Sharecast News) - Time Out said on Friday that it plans to raise up to £45m in a placing to strengthen its balance sheet in the wake of the coronavirus pandemic.
The company also announced it was looking to raise £4m in an open offer. In both cases, the shares will be issued at 35p each.

In addition, Time Out said it has entered into the amendment and restatement of the terms of its €22.6m (£20.2m) outstanding debt facilities from Incus Capital.

The company said the placing and open offer will support general working capital requirements given the "significant" impact of the Covid-19 outbreak on trading, which is expected to continue in the near term. They will also strengthen the balance sheet so Time Out is prepared for its downside scenario and part-fund the group's continuing capex programme.

The proceeds will also be used to progress the new London Waterloo and Porto markets to their scheduled openings.

"The board believes that, following a successful equity fundraising and Incus loan restructuring, a cost reduction programme and further strategic initiatives, the company will emerge, following the immediate impact of Covid-19, with a stronger brand, a larger audience and a higher operating margin and will be well positioned to continue the successful Time Out Markets roll-out which transformed the group in 2019," it said.

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