Helloworld announces $50 million capital raising.
Helloworld Travel Limited has just launched a $50 million fully underwritten equity raising, to strengthen its balance sheet and “provide liquidity to help manage the prolonged period of disruption to the global travel industry”.
The company is forecasting that travel restrictions in place are expected to persist through 2020 and into 2021, and once the money is raised it will have sufficient liquidity for operating and capital expenditure through to the end of 2022.
Helloworld has undertaken a range of cost savings initiatives including the closure of its offices in Manila and Mumbai, and the divestment of its US wholesale operation.
The company said it was assisting members of its networks across Australia and New Zealand to “manage their way through this challenging period”. However so far about 5% of franchisees have elected to close, Helloworld added.
More details in today’s issues of Travel Daily