Manchester-based online holiday retailer On the Beach Group plc (OTB) said on Friday it raised £67.3 million in a sale of new stock in the firm via a share placing.

“A total of 26,143,500 placing shares have been placed by Numis Securities Limited and Peel Hunt LLP, as agent for and on behalf of the company, at a price of 257.5 pence per placing share,” said On the Beach Group.

“The placing of 26,143,500 the placing shares, representing approximately 19.9 per cent. of the company’s existing issued share capital, will raise gross proceeds of approximately £67.3 million.

“The placing price is equal to the closing share price of 257.5 pence on 21 May 2020.”

Late on Thursday, On the Beach Group had issued a stock exchange statement explaining the reasons for the placing of shares, revised banking facilities and giving a “Covid-19 trading and financing update.”

In the statement, On The Beach Group said: “In late February, with the spread of Covid-19 into the Canary Islands, the industry witnessed a dramatic fall in holiday booking volumes and airspace subsequently closed in mid-March.

“The length of this airspace closure remains unknown and the Board is of the view that the vast majority of bookings taken in H1 will not travel as planned in H2.

“As a result, the board now expects the group’s H1 results scheduled for release on 30 June 2020 will include a material exceptional charge, subject to how assumptions continue to develop, of approximately £35m, to reverse the revenues related to these bookings.

“The group’s H2 results are also expected to be impacted, dependent upon how long travel restrictions remain in place.

“Anticipating that the impact of Covid-19 on the travel industry would likely be deeper and longer lasting than on most other sectors, and as a result would lead to a dramatic change in the competitive landscape, the group took swift and decisive mitigating actions to reduce its cash burn and to amend and extend its existing £50m revolving credit facility (RCF) …

“Together with the extended banking facilities now available to the group, the placing will allow the group to emerge from this crisis in a strong position.

“The board has concluded the placing is in the best interests of shareholders and will promote the long-term success of OTB.”