Hotel Chocolat considering equity raise, shares drop

Premium chocolatier Hotel Chocolat confirmed on Thursday that it is considering an equity raise.

"The board of Hotel Chocolat notes recent press speculation and confirms that it continues to assess funding options, which may include a possible equity issue, to increase the company's long term sales capacity to capitalise on faster growth," it said.

It added that a further announcement will be made if appropriate.

The statement came after Sky News reported that the group is planning to announce a share sale to raise around £30m in the coming days. It was understood that Hotel Chocolat's leading institutional investors have been sounded out about the proposal in the last few days.

In March 2020, the company raised £22m in a share placing just days before the first national lockdown was imposed, citing a decline in footfall.

At 1255 BST, the shares were 4.5% at 348.44p.