Madisons Coffee Seeks Shareholder Approval for New Share Issuance to Fund Acquisition

Madisons Coffee, seeking to expand its restaurant arm, has announced plans to issue 30 million new shares to fund a potential acquisition. The company, which sold its coffee operations in November to focus on Richoux restaurants, is now under the leadership of Andrew Guy, former CEO of The Restaurant Group. Guy aims to target small branded restaurant groups that align with Madisons' existing Richoux chain. An analyst suggests that the talks may lead to a significant transaction.

Key Takeaways:

• Madisons Coffee plans to issue 30 million new shares at 1p each to fund a potential acquisition, valued at £2.9m.
• The company aims to shake off its coffee operations and focus solely on its Richoux restaurant arm.
• Andrew Guy, former CEO of The Restaurant Group, has been brought in to lead the acquisition strategy.
• Guy plans to target small branded restaurant groups that fit well with Madisons' existing Richoux chain.
• Madisons has £2m of available cash and a previous sale of its coffee operations generated a revenue stream.
• The company is set to hold an extraordinary meeting on June 21 to discuss the share issuance.
• Analysts believe the negotiations could result in a "transformational transaction" for Madisons.
• The company's shares rose 1/2p to 9 3/4p following the announcement, indicating confidence in the share issuance.

Statistics:

• £2.9m: Value of the share issuance for the potential acquisition.
• £2m: Available cash for Madisons.
• 30 million: Number of new shares to be issued at 1p each.
• 1/2p: Increase in Madisons' share price following the announcement.
• 9 3/4p: Current share price of Madisons.
• £2k: Revenue generated from the sale of Madisons' coffee operations.
• 21 June: Date of the extraordinary meeting to discuss the share issuance.

Sources:

• The Times (no date provided)
• Reuters (no date provided)