Real Good Food has resolved its temporary cashflow pressures after its three major shareholders stepped in to provide extra funding.
Napier Brown Ingredients, Omnicane International Investors and funds managed by Downing have provided up to £4m in the form of a draw-down loan note facility.
The company said this would relief pressure on cash availability over the coming months while longer-term funding arrangements were put in place.
“Today’s additional funding is an important part of meeting our short-term requirements, and further funding will be required for working capital and investment purposes in order to implement the group’s business plan,” said RGF chief executive Hugh Cawley.
The raising of the loan notes was part of the longer-term funding plan the group was pursuing, he added.
The news follows the company’s trading statement at the end of January when it warned it expected a full-year EBITDA loss of up to £3.5m.
No comments yet