Media and events company Time Out today said it was seeking to raise £49m via a share placing and open offer to bolster its balance sheet in the face of the coronavirus pandemic.
The company has been hit by a closure of its food hall markets and the suspension of its print editions alongside a plunge in advertising revenue.
Time Out said if the placing is successful it should have enough cash to last it until November 2021.
It has also agreed a loan restructuring of its €22.6m (£20.2m) outstanding debt facilities with Incus Capital Advisers.
Time Out said it was aiming to raise £45m via the placing and £4m through its open offer at an issue price of 35p per new ordinary share.
The company said it would use some of the proceeds of the equity raising to pay off outstanding loan notes to Oakley Capital Investments.
It said it would use the rest of the cash for strengthening its balance sheet in the wake of covid-19 and to continue the development of its Time Out markets.
Time Out said if the funding is successful it should be able to meet its expenditure up to the fourth quarter of 2021 at which point it said it “believes there will be a range of funding options available to the company”.
However, it said it expects its 2019 accounts, which have been delayed until 30 September at the latest, “will make reference to a material uncertainty related to going concern” even if its equity raising and loan restructuring is successful.
The company also said its food markets were “well-suited” to allow “social distancing in an enjoyable environment” as they are large and well-ventilated.
It said it was preparing its market for reopening “including distanced seating plans, table partitioning, cashier shields, sanitisation teams and the introduction of collection and home delivery”.
Liberum is acting as broker on the equity raising.