This new funding, provided by Hilco Private Capital, followed a trading update from the manufacturer issued on 30 September 2022 in which it indicated it was in advanced discussion to secure additional funding.
RGF executive chairman Mike Holt said: “We are delighted that new funding has been secured to support the radical reform of RGF which is intended to reduce costs, protect revenues and preserve the inherent value of the Group.
“With support from both customers and employees, we are making good progress on the required reforms and several major customers have already agreed to significant price re-sets. We are confident that the right actions are being put in place to return the business to sustainable profitability and being cash generative.”
The funding was provided to RGF for a term of twelve months and supplements an existing £6.3m facility with Leumi ABL. As a consequence, no new Loan Notes will be issued.
Holt added: “I am particularly pleased that Leumi ABL continues to support the Group and that Hilco has provided the new funds required. I would also like to thank our suppliers for their forbearance over recent months pending this funding being secured.”
The funding ranks behind the existing Leumi ABL facility and ahead of the Loan Notes in security. The blended interest rate for third party funding is expected to be 12.1%, based on current market rates.
Meanwhile, New Wave Foods has secured new six-figure investment from its biggest shareholders to progress the production of its Scottish sustainable seaweed brand Shore.
The company said that this latest equity fundraising round will enable the food firm to further expand the distribution of its products across UK retail and bring more innovative products to market under its brand Shore The Scottish Seaweed Co.