AVANTI CAPITAL PLC 
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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN NOR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
This announcement is an advertisement and not a prospectus or an admission document and does not constitute a recommendation regarding any securities. Investors should not subscribe for or purchase any shares referred to in this announcement except on the basis of information in the admission document to be published by Eclectic Bar Group plc in due course in connection with the proposed institutional placing and admission of the entire issued and to be issued ordinary shares of Eclectic Bar Group plc (the "Ordinary Shares") to trading on AIM, a market operated by London Stock Exchange plc (the "Admission Document"). Copies of the Admission Document will, following publication, be available from the Company's registered office.
This communication is directed only at (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("Order") (investment professionals) or (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations etc) (all such persons referred to above being "Relevant Persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with Relevant Persons.
For Immediate Release
20 November 2013
Eclectic Bar Group plc
("Eclectic", the "Company" or the "Group")
Admission to trading on AIM raising £15.0 million
Eclectic, one of the leading operators of premium bars in the UK, is pleased to announce a successful fundraising of £15.0 million (the "Placing") and the proposed admission of its ordinary share capital to trading on AIM on 28 November 2013 ("Admission").
Highlights
· Eclectic has conditionally placed a total of 6,562,500 new Ordinary Shares at a price of 160 pence per Ordinary Share (the "Placing Price") raising approximately £10.5 million (gross) for the Company. The market capitalisation of Eclectic on Admission at the Placing Price will be approximately £20.6 million.
· In addition, a further 2,835,861 Ordinary Shares held by the Group's principal shareholder, Avanti Capital plc ("Avanti"), will be 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.
· Eclectic will use the net proceeds of the Placing to repay a shareholder loan owed to Avanti of approximately £7.3 million with surplus net funds raised of approximately £1.8 million to be used to fund organic growth prospects and new site acquisition opportunities.
· Immediately following Admission, management will hold 27.0 per cent. of the Ordinary Shares which will be subject to a 12 month lock-in period.
· Admission to AIM and the commencement of dealings are expected to begin at 8.00 a.m. on 28 November 2013 under the ticker symbol BAR.
· Panmure Gordon (UK) Limited is acting as Nominated Adviser and Broker to the Group.
Reuben Harley, Chief Executive Officer of Eclectic, commented:
"We are delighted with the support and reception that we have received from investors resulting in additional funds being raised allowing Avanti to exit completely and Eclectic to begin life on AIM 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."
For further information, please contact: | |
Eclectic Bar Group plc Reuben Harley, CEO John Smith, CFO | Tel: 020 7376 6300 |
Panmure Gordon Corporate Finance Andrew Godber / Atholl Tweedie / Duncan Monteith Corporate Broking Adam Pollock / Charles Leigh-Pemberton | Tel: 020 7886 2500 |
College Hill Matthew Smallwood Justine Warren | Tel: 020 7457 2020 |
Group Overview
Eclectic is a leading operator of premium bars in the UK. Eclectic's portfolio comprises 20 venues located in major towns and cities, predominantly targeting a customer base of sophisticated students midweek and stylish over-21s and young professionals at weekends. 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. These brands have proven themselves to be consistently cash-generative, continuing to trade well even since the start of the global financial crisis of 2008. Eclectic has established a stable financial track record over the past five years with turnover in the year ended 30 June 2013 of £21.2 million, representing a two year CAGR of 16.9 per cent., and Group EBITDA of £3.0 million, representing a two year CAGR of 16.7 per cent.
The Group's management team, led by Reuben Harley, who has over 25 years' experience of working in the UK pub and bar industry, is implementing a strategy to grow the business through the development of new sites either under the Company's existing brands or using brands which can be successfully maintained, as well as business acquisitions as appropriate opportunities present themselves.
The bar market in the UK remains fragmented, and the Company is presented with a significant number of opportunities for acquisitions of both new sites and businesses. The management team has demonstrated its ability to achieve successful openings of new venues, on average exceeding its target returns.
Placing Statistics
Placing Price per Ordinary Share | 160 pence |
Number of new Ordinary Shares being issued pursuant to the Placing | 6,562,500 |
Number of Sale Shares being sold by Avanti | 2,835,861 |
Total number of Placing Shares | 9,398,361 |
Number of Ordinary Shares in issue at Admission | 12,862,500 |
Percentage of Enlarged Share Capital represented by the new Placing Shares | 51.0 per cent. |
Gross proceeds of the Placing receivable by the Company | £10.5 million |
Estimated net proceeds of the Placing receivable by the Company | £9.1 million |
Estimated net proceeds of the Placing receivable by Avanti | £4.4 million |
Estimated market capitalisation of the Company at the Placing Price at Admission | £20.6 million |
TIDM | BAR |
ISIN | GB00BG49KW66 |
Website | www.eclecticbars.co.uk |
Panmure Gordon (UK) Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no-one else in connection with this announcement, the proposed Placing and Admission. Panmure Gordon (UK) Limited will not regard any other person as its client in relation to the matters described in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Placing and Admission, the contents of this announcement or any transaction, arrangement or other matter referred to herein.
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