Showroomprivé, a French online retailer specializing in flash sales, launched a €10 million rights issue guaranteed by its founders David Dayan and Thierry Petit. The proceeds will finance the company’s general expenses. As of May 31, its net cash was €12.7 million.
Shareholders can obtain 22 new shares for 17 existing shares. The new shares are priced at €0.15 each. The subscription period started on July 23 and ends on July 31.
After suffering a 19.8 percent drop in revenues in the first quarter, Showroomprivé recorded a strong recovery in internet sales early April during the coronavirus-related lockdown, resulting in a 19 percent rise in second-quarter revenues. It estimates that the first-half top line reached €301 million to €303 million, roughly in line with the €302 million posted a year earlier. It sees first-half Ebitda ranging from €5.5 million to €7.5 million, compared to a loss of €23 million a year earlier.