Mosaic pieces together £2.5m from share offering
Led by joint chief executives James Watson, brother to City Pub Group's Clive, and Peter McDonald, The City EIS Fund, which comprises the Galaxy, Pioneer and Sovereign City Pub Companies and trades under the Mosaic name, netted subscriptions after costs of more than £2.5m from its recent offering.
Founded in 2015, the operator of pubs across London, Birmingham and the south east has reduced its net debt to less than £2m off the back of the successful fundraise.
“Our recent fundraise was a strategic decision to strengthen our collective balance sheet and increase liquidity, in order to protect our shareholders’ interests while current trading conditions and the Government’s decision-making remains in flux,” Watson commented.
“We are very pleased existing shareholders and new investors have shown such support to the fundraise, and with a predominantly freehold estate and modest gearing, this additional cash means we can move forward with confidence and continue to pursue our longer-term goal of restoring shareholder value over the next three years”.
The operator grew its portfolio beyond 20 sites in 2018 with the £1.3m purchase of Edmunds Bar & Brewhouse, the Queens Arms and the Rectory Bar in Birmingham in a joint deal.
