Pure organiser Hyve confirms equity fundraise is a possibility
Trade shows giant Hyve Group has confirmed that it’s considering a possible equity fundraise. The move could come as the firm’s business continues to be hit by the coronavirus pandemic.
Hyve, which organises key shows such as Pure London and Moda, has had to postpone a number of events and it’s still unclear how successful rescheduled trade shows will be.
The company issued a stock exchange statement on Tuesday responding to recent media speculation regarding a potential equity fundraise by the firm.
It said that it’s continuing “to take decisive action and is reviewing all options to secure the group's long-term financial position”. The options under review include possibly raising more cash by issuing shares.
That’s an approach that has been taken by several firms, including both Asos and Joules. Meanwhile others, like Next, have sought to raise cash via selling and leasing back assets such as head office buildings and distribution hubs.
Hyve said it “continues to be engaged in constructive dialogue with the group's lenders in relation to covenant headroom and facility flexibility and has already secured a waiver of the June 2020 covenant tests under its debt facilities”.
And it also “remains confident” that its strategy of focusing on market-leading events “provides a strong platform to return to growth post the current crisis and its priority remains to safeguard the group's customers, colleagues and communities during this period of uncertainty”.
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