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Real Good Food PLC shares jumped 62% on Monday after it said it has secured £2.5 million in funding to supports its turnaround.
Shares in Real Good Food were up 62% at £1.70 each in London on Monday around midday.
The Liverpool-based food manufacturer said the new funding was provided by Hilco Private Capital for a 12-month term and supplements its existing £6.3 million facility with Leumi ABL.
The new funding is more than Real Good Food’s market capitalisation of £1.7 million.
No new loan notes will be issued as a result, with the funding ranking behind the existing Leumi facility and ahead of the loan notes in security.
Real Good Food said the blended interest rate for third party funding is expected to be 12.1%, based on current market rates.
‘We are delighted that new funding has been secured to support the radical reform of Real Good Food which is intended to reduce costs, protect revenues and preserve the inherent value of the group. With support from both customers and employees, we are making good progress on the required reforms and several major customers have already agreed to significant price re-sets,’ said Executive Chair Mike Holt.
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