(Sharecast News) – Escape Hunt said it would raise £1.4m from equity investors as it announced an agreement to buy its French master franchise partner at a cost of £330m.
The escape rooms operator is placing 8,036,904 new shares at 17.5p each – a discount of 4% to the average closing price over the preceding five days.
BGP Escape operates in France and Belgium. It owns two sites, in Brussels and Paris, and has 11 franchised venues across Paris. Escape Hunt said the acquisition would increase its number of owned sites to 17 and that this number should support positive earnings and cash flow once conditions return to normal from Covid-19.
In addition to the £330,000 cost of buying the business Escape Hunt will invest £150,000 of the money raised in the French and Belgian business and use the rest to open more UK sites.
Escape Hunt Chief Executive Richard Harpham said: “Prior to Covid, the French/Belgian territory was a very strong performer for Escape Hunt and we are confident that demand will return to previous levels once the current restrictions are lifted.
“The BGP Escape management team has created a wonderful business over the past 6 years and it is a pleasure to welcome them to our central team as we consider together how best to expand the company’s reach. We are excited about the prospects for the region and are delighted to be the owner of the business for the next stage in its journey.”
Escape Hunt said it had bypassed pre-emption rights to raise the money as authorised but that it received strong support from existing shareholders. John Story, a non-executive director who owns about 10% of Escape Hunt, has subscribed for almost £2.5m shares.
