Rank Group Issues Statement On Equity Raise

The Rank Group who operates Grosvenor Casino and Mecca Bingo brands in the UK says it is in talks with advisors on an equity raise, the statement from the company follows media speculation over the past days about the gambling firm.

A spokesperson from Rank said on the press speculation: “The board continuously reviews the group’s financial position and confirms it is in discussions with its advisers regarding a potential equity issuance of up to a maximum of 19.9% of its issued share capital.

“Such an equity issuance would be intended to strengthen Rank’s balance sheet in this unprecedented trading environment. There can be no certainty that the equity issuance will proceed.”

Analyst’s say that the reason for the move by Rank is to raise cash liquidity as casinos and bingos which make the most revenues for Rank are now closed again in the UK following the UK Governments lockdown till at least the 2^nd December.

It is expected should Rank raise liquidity in this manner then funds would be secure for the company well into the second half of 2021.