Retail Food Group, a Queensland-based food and beverage company, said that it has secured a capital commitment of AUD $47.4 million in the form of debt and equity capital raising.

The company intends to utilize the net proceeds to help reset and improve the balance sheet as well as to explore core business and inorganic growth opportunities.

Retail Food Group announced that it has secured firm commitments to raise AUD 24.9 million before costs from sophisticated and institutional investors through a placement of 311.5 million ordinary shares at an issue price of AUD 0.08 per share.

The Australian food and beverage company has also entered into a binding term sheet with Washington H. Soul Pattinson and Company to obtain a new loan facility of AUD 20 million.

Alongside the placement and the new debt facility, Retail Food Group aims to raise an additional AUD 2.5 million via a share purchase plan.

Retail Food Group owns brands like Gloria Jean’s, Brumby’s Bakery, Donut King, Crust Gourmet Pizza, Michel’s Patisserie, Cafe2U, Pizza Capers, as well as The Coffee Guy.

Peter George — Retail Food Group Executive Chairman said: “The Company’s strong 1H23 results demonstrate the resilient nature of the Group’s brand system portfolio and validate the strategic decisions implemented throughout the Company’s ‘franchisee first’ turnaround journey.

“We have carried considerable momentum into the 2H23 and remain focused on delivering solutions to unlock growth and drive enhanced profitability for both our franchise partners and shareholders.”

  Australia, Peter George, Queensland, Retail Food Group, Washington H. Soul Pattinson and Company