Coffee Republic raises cash to fund expansion

Coffee Republic has raised more than £900,000 through a share placing to bank-roll its ambitions to grow the chain through franchising.

37,400,000 shares priced at 2.5p each have been placed by broker Teather & Greenwood with Coffee Republic chief executive Steven Bartlett and financial director Simon Drysdale.

The placing will raise £935,000 before expenses and the total number of shares in issue after the action will be 565,565,304.

The company is also opening up the offer to existing shareholders with a similar share placing arrangement where they will be able to subscribe to one new ordinary share for every 20 held.

Further details of this offer will be posted to shareholders in the next few weeks.

Coffee Republic chairman Peter Breach said: “This injection of funds will assist the company to develop the brand more quickly and hasten the delivery of value to the shareholders.”

The company signed its first international master franchise with an operator in Bulgaria in December.

Brian Carroll has left the Coffee Republic board to pursue other entrepreneurial activities.

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By Chris Druce

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