16 Apr 2020

Vista Group seeks $65m as Covid-19 cinema closures hit business

11:01 am on 16 April 2020

Cinema software company Vista Group is looking to raise $65 million to offset the significant disruption to its business caused by the Covid-19 pandemic.

Movie theatre interieur

Cinema closures have hit Vista Group's customers. Photo: 123RF

"Almost all of our customers are significantly impacted by the restriction of movement and the duration of cinema closures is unpredictable," chair Kirk Senior said.

"The equity raising combined with the already announced measures to reduce operating costs, defer certain capital expenditure projects and cancelling the FY19 final dividend provide a comprehensive plan to strengthen and provide liquidity to the business in order to remain well capitalised during this difficult time and, importantly, position Vista Group for growth post Covid-19."

The company is offering $25 million of shares to institutional investors at $1.05 each, a 9 percent discount to the last traded price of $1.40.

A further $40m will be offered to retail investors in a one-for-4.37 share entitlement offer.

Company founders, directors and executives would take up $4.7m of the retail offer, with the balance of $35.3m fully underwritten.

Vista said the additional capital would increase its financial flexibility, which would leave it well-placed to take advantage of opportunities post the pandemic when cinemas begin to reopen.

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