Revolution shareholders ‘highly likely’ to lose all if fundraise fails

The chief executive of bar operator Revolution Bars Group has said it is “imperative” that shareholders vote in favour of a £12.5m fund raise, and that investors will likely lose everything if the plans are rejected. The company will hold a general meeting on 14 June, having yesterday told shareholders that a mooted takeover by rival bar operator Nightcap would not happen. Revolution now plans its equity raise to be followed by a restructuring plan, and said the restructuring can only happen if the new capital is secured. “The board believes that completion of the fundraising, which would enable the restructuring plan to proceed, provides the best available outcome for shareholders and the only way for shareholders to maintain value for their current shareholdings in the company,” Revolution said. “The board therefore believes that it is therefore in the best interests of all stakeholders to approve the fundraising, enabling the restructuring plan to proceed.” If the fundraising is rejected, Revolution said, the company would be forced to strike several sales through an insolvency process, meaning shareholders would be “highly likely” to lose all of their investment. Chief executive Rob Pitcher said: “It is imperative that shareholders vote in favour of the fundraising resolutions at the general meeting. Doing so will preserve optionality for the company, value and ultimately jobs. The alternatives are stark and value destructive for all stakeholders.”