Portable hotels business Snoozebox today tapped investors for £10.1 million to keep the lights on at the struggling firm.
The AIM-listed company, which uses converted shipping containers to create temporary hotels at events such as Glastonbury and the British Grand Prix at Silverstone, said extra cash was needed for the business to keep trading after a review identified “serious commercial and financial problems”. Snoozebox made a pre-tax loss of £4.4 million last year, up from £1.3 million a year earlier, blaming the figure on “uncertainties” around the accounting of revenue related to the Olympics.
Chief executive Robert Breare and finance director Chris Upton resigned after the results. Executive chairman David Morrison said: “The placing will enable the company to fulfil its contractual commitments this year and next, as well as provide necessary fuel for growth. We believe that the potential of the company remains undiminished and we look forward with optimism.”
Snoozebox said it is considering branching out into specialist markets such as local authority temporary housing and faculties for medical providers. It is also holding joint-venture talks in the US, Russia, Middle East and India.
The equity placing, which prices shares at a 4 per cent discount at 24p, represents 38.8 per centof Snoozebox’s issued stock and is dependent on shareholder approval next month.
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