Vista Group's (ASX:VGL) NZ$65 million equity raising

Company News

by Ortenzia Borre

Vista Group (ASX:VGL) is undertaking a NZ$65 million equity raising to improve it’s balance sheet flexibility and liquidity.

The company says the funds will support the business through the significant disruption caused by the current COVID-19 crisis.

The equity raising is at an offer price of NZ$1.05 per share via a NZ$25 million underwritten Placement, together with an approximately $40 million 1 for 4.37 Entitlement Offer.

Chairman, Kirk Senior said the outbreak of COVID-19 and the actions taken by governments in response are having a substantial impact on Vista Group and the global film industry with their customers significantly impacted by the restriction of movement as well as the unpredictable duration of cinema closures.

Vista says their Board also believes it prudent to pursue an equity raising to ensure their balance sheet flexibility remains well capitalised during this period and is well placed to take advantage of opportunities post COVID-19.

Vista Group (ASX:VGL) has entered into a trading halt and shares last traded at $1.32.