REG - Real Good Food PLC - Additional Funding

Real Good FoodAnnouncement

21/11/2022 07:00

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RNS Number : 9821G  Real Good Food PLC  21 November 2022

21 November 2022

 

Real Good Food plc

 

("RGF" or "the Group")

 

Additional Funding

 

Real Good Food plc (AIM:RGD), the food manufacturing business specialising in
cake decoration, announces that it has secured an additional £2.5 million in
funding to support its turnaround. This is further to the Trading Update
issued on 30 September 2022 in which the Group indicated it was in advanced
discussions to secure additional funding.

 

The new funding is being provided by Hilco Private Capital for a term of
twelve months and supplements the existing £6.3 million facility with Leumi
ABL.  As a consequence, no new Loan Notes will be issued. The funding ranks
behind the existing Leumi ABL facility and ahead of the Loan Notes in
security. The blended interest rate for third party funding is expected to be
12.1%, based on current market rates.

 

Mike Holt, Executive Chairman, commented:

 

"We are delighted that new funding has been secured to support the radical
reform of RGF which is intended to reduce costs, protect revenues and preserve
the inherent value of the Group. With support from both customers and
employees, we are making good progress on the required reforms and several
major customers have already agreed to significant price re-sets. We are
confident that the right actions are being put in place to return the business
to sustainable profitability and being cash generative.

 

I am particularly pleased that Leumi ABL continues to support the Group and
that Hilco has provided the new funds required. I would also like to thank our
suppliers for their forbearance over recent months pending this funding being
secured."

 

 

 

Enquiries:

 Real Good Food plc                                Tel: 0151 541 3790

 Mike Holt, Executive Chairman

 finnCap Limited (Nomad and Broker)                Tel: 020 7220 0500

 Carl Holmes / Abigail Kelly (Corporate Finance)

 MHP Communications (Financial PR)                 Tel: 020 3128 8100

 Reg Hoare / Katie Hunt                            rgf@mhpc.com (mailto:rgf@mhpc.com)

About Real Good Food

Real Good Food plc is a food manufacturing business specialising in Cake
Decoration; it serves several market sectors including retail (own label and
private label), manufacturing and export, and operates under two brands,
Renshaw and Rainbow Dust Colours. http://www.realgoodfoodplc.com.

 

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