Thursday 1st April 2021
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Savor Limited, is pleased to announce that it has successfully completed its fully underwritten capital raise to shareholders. The rights issue was soundly supported by shareholders with 20,585,293 shares taken up by shareholders, totalling $3.6 million, and 13,370,560 shares to be subscribed for by underwriters, to raise a total of $6 million. The capital raised will be used to fund the recently announced acquisition of the Amano, Ortolana and The Store venues from Hipgroup and to add strength to the Group’s balance sheet. The Group is expected to have approximately $7 million cash on hand to support growth and a total debt ratio of approximately 2 times operating earnings.
The Board also announces that it has appointed Kiwibank as the Group’s new banking partner. It would like to thank its incumbent, Bank of New Zealand, for their work and support, particularly through the divestment of Moa Brewing. Bank of New Zealand has also expressed interest in a co-banking relationship with Kiwibank on future growth aspirations in the hospitality sector, which the Board will explore with both institutions once the integration has been completed.
Geoff Ross, Chairman of Savor, said: 'It has been pleasing to receive support from shareholders through the capital raise, and it is a clear signal of the markets confidence in the Group’s strategy to focus on its hospitality business, which was envisioned by the Board two years ago.
“The Non-Solo Pizza acquisition demonstrated the Group’s ability to successfully integrate iconic venues. The award-winning venues, Amano, Ortolana and The Store, located in Auckland’s premier hospitality precinct, Britomart, strategically expand Savor’s footprint in the flagship area and cement Savor Group’s position as a leader in the hospitality industry,” he concluded. Savor expects that the new shares will be allotted, and statements sent out to shareholders on or about 8 April 2021.
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