Safestyle launches £8.5millon
‘Project Lock’ Covid cash buffer
14th April 2020

Safestyle UK has raised £8.5million by Placing Shares to build a cash buffer in the face of the of the Covid-19 crisis.
The company this week announced that a total of 50,000,000 Placing Shares have been placed at the Issue Price of 17 pence per share by way of an accelerated bookbuild process.

It said in a statement: “The net proceeds are intended to strengthen the Company’s balance sheet so that the business is well capitalised and has a strong cash buffer to ensure it can continue in business through and out of the current crisis relating to the Covid-19 pandemic.”

It adds in its Placing Announcement: “The Company’s banking covenants will be waived for up to 6 months following completion of the Placing, to apply for the entire shutdown period and a reduced EBITDA covenant target will be in place for the rest of the year following resumption of trading.”

CEO Mike Gallacher said: “The strong support received from our shareholders, both existing and new, in the current challenging market is hugely welcome. I am also delighted that the Board has also committed to contribute significantly to the placing, demonstrating all of our Directors’ strong belief in the growth strategy and potential of the Group. The business has made strong progress in recent years and I believe that, as a result of the actions taken, we are well placed to weather the Covid 19 crisis and emerge to resume our recent positive momentum.

“Together with our existing funding arrangements, this equity fund raise significantly strengthens our balance sheet, providing further headroom should we need to extend our temporary shutdown in line with Government guidance, protecting the NHS and saving lives. The business acted promptly in ceasing all operations on 24 March 2020 and I am grateful to our customers and staff who responded to this challenging situation and the disruption it has caused with such understanding and flexibility. In addition I would like to take the opportunity, on behalf of the Board, to thank our shareholders, suppliers, banks, brokers and advisers for their strong support as we have worked together to protect the business and ensure that it emerges strongly when this crisis passes, as in due course it will.”