Shares in Village Roadshow fell hard after the entertainment group came out of a trading halt following an equity raising.
A short time ago, they were down 13.7% to $1.88.
The company announced the completion of the institutional side of its 5 for 26 entitlement offer to raise $51 million and pay down debt.
The offer raised $35.7 million at $1.65. The retail offer is expected to bring in $15.7 million.
“We are pleased with the strong support shown by VRL’s shareholders and other institutional investors for the equity raising,” says Co-CEO and Co-Chairman Graham Burke.
Earlier this month, Village announced the sale of its Wet‘n’Wild Water Park in Western Sydney to Parques Reunidos, one of the world’s leading leisure park operators based in Spain, for $40 million.
Village will use the proceeds from the sale pay down debt.
Both the company’s key divisions, Theme Parks and Cinema Exhibition, are being hit by “challenging trading conditions,” says the company.
In the latest half year results revenue was down 5% to $515,163 million.