Nightcap Buys London Cocktail Club For GBP5.7 Million On AIM Debut

(Alliance News) - Shares in Nightcap PLC began trading in London on Wednesday, raising GBP4.0 ...

Alliance News 13 January, 2021 | 12:06PM
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(Alliance News) - Shares in Nightcap PLC began trading in London on Wednesday, raising GBP4.0 million as part of its float and adding that it will buy UK bar group London Cocktail Club for an initial GBP5.7 million.

Nightcap, established in 2020, said it plans to "take advantage of the significant changes taking place within the premium bars" market in the UK.

It raised GBP4.0 million through a placing at 10 pence per share and eyed a market capitalisation of GBP13.5 million on admission.

Shares were trading at 11.7p around midday, valuing the firm at roughly GBP15.8 million.

Allenby Capital acted as nominated adviser and broker.

Nightcap said it will fork an initial GBP5.7 million to acquire London Cocktail Club. The initial consideration will be funded through the issue of 55.4 million shares and a cash payment of GBP162,116.

Nightcap Chief Executive Officer Sarah Willingham said: "To have floated Nightcap during a national lockdown is testament to the strength of our extended team, our advisers and our brokers Allenby Capital, the London Cocktail Club shareholders and the welcome support of our new investors. They have all seen our vision for the future and our determination to help the hospitality sector shine once again. I couldn't be prouder to be part of this great industry."

London Cocktail Club, which also has a site in Bristol, targets customers between 26 and 40 years of age.

"The board considers the London Cocktail Club to be a scalable model that is well-positioned to take advantage of the current opportunity in the hospitality segment of the UK property market for taking on attractively priced sites against a backdrop of decreased competition," Nightcap said.

"The board and the London Cocktail Club's senior management team have extensive and relevant experience in developing successful companies in both the UK hospitality sector and across quoted and unquoted companies in general."

London Cocktail Club has Nightcap CEO Willingham, an entrepreneur and former panellist on BBC television show Dragon's Den, as well as French chef Raymond Blanc on its board as non-executive directors.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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