Global law firm Ashurst is advising long standing client and leading global media and leisure business Time Out Group plc on its £17 million capital raising comprising a firm placing, retail offer, conditional placing and placing and open offer.
The capital raising was underpinned by a cornerstone investment by Lombard Odier, who agreed to subscribe for new ordinary shares with an aggregate value of up to £15 million.
The Ashurst team was led by corporate partner Simon Bullock, supported by associates Louise Johnson and Yoana Georgieva. Senior consultant Jeffrey Sultoon, counsel Jeffrey Johnson and senior associates Harry Thimont and Marianna Kennedy also advised. Partner Nicholas Gardner and associate Rebecca Kell advised on tax matters.
Pursuant to the equity fundraising, Time Out has issued in aggregate 48,571,947 new ordinary shares (representing approximately 14.6 per cent of the enlarged issued share capital of the Company) at a price of 35 pence per share, raising gross proceeds of approximately £17 million. The conditional placing was subject to shareholder approval which was obtained at a general meeting held on 20 April 2021. The new ordinary shares issued pursuant to the firm placing and retail offer were admitted to trading on AIM on 6 April 2021 and the new ordinary shares issued pursuant to the conditional placing and placing and open offer were admitted to trading on AIM on 21 April 2021.
In aggregate, 26,285,690 new ordinary shares have been issued to Lombard Odier pursuant to the Capital Raising.
The net proceeds from the capital raising will be used to:
- support general working capital requirements given the continued significant impact of the COVID-19 outbreak on trading, which is expected to continue in the near-term;
- strengthen the Company’s balance sheet in the wake of the impact of COVID-19 in order to be prepared for the Company’s downside scenario; and
- fund the Company’s capital expenditure related to the Porto Time Out Market.
Liberum acted as sole bookrunner in relation to the equity fundraising.
Time Out believes that, following completion of the capital raising, a continued cost management programme and further strategic initiatives, the Company will emerge, following the impact of COVID-19, with a greater digital focus, higher operating margins due to an optimised cost base, more Time Out Markets open and a large global audience that has remained engaged with ‘Time Out’ and its content.