Oliver’s Real Food looks to raise capital to transform brand

Oliver'sOliver’s Real Food has noted an approach of consolidation to FY19, which will see expected revenues of $40 million to $43 million, translating to an EBIDTA of between $1 million to $1.5 million.

This consolidated approach will see many projects implemented to benefit and improve the performance of the brand, with some projects seeing part-year benefits and having little impact on FY19 results.

The renewed approach will become the focus on the company following an institutional placement, led by Veritas Securities Limited, which saw $3.5 million raised, as well as a 1 for 6 pro rata non-renounceable entitlement offer.

Under this entitlement offer, an eligible shareholder will be able to subscribe for one new share for each six shares held at an offer price of $0.11 per new share, with the aim of raising a further $3.9 million. The offer will begin on the 12 November, and will run until 5pm, 27 November.

The net proceeds from these capital raising activities will go toward the development and roll-out of new stores, self-ordering kiosks, kitchen improvements, brand and marketing, as well as a warehouse in New South Wales. The new warehouse will improve efficiency, according to the company, as well as increase the ability to service the expanding store count.

“Importantly, each initiative has been implemented prior to the two far busier trading quarters, being the upcoming October to March period, and we believe that Oliver’s will see a positive revenue, cash flow and profit benefit through these quarters,” Oliver’s chairman Mark Richardson said in a release to investors.

These implementations are expected to have a positive effect on FY20 performance, with the business eyeing an EBITDA of $3-$4 million, as well as revenues of between $50-$55 million.


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