Victory says people will return to serviced offices as it raises $15m
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Victory Offices (ASX:VOL) believes COVID-19 does not spell the end of serviced offices.
Restrictions on gatherings meant companies had no choice but to operate remotely (also known as the spare room at home) and there is speculation such arrangements could be here to stay.
Serviced office provider Victory was naturally impacted by COVID-19 but believes the impact is temporary.
This morning the company announced a $15 million capital raising which it says will put it in a stronger position than its competitors.
“The equity raising announced today, alongside operational and cost saving initiatives will position Victory Offices to overcome adversities associated with COVID-19 and current market conditions,” CEO Dan Baxter says.
“Additionally, with the return of occupancy to our serviced offices, virtual office facilities and flexible workspaces, we believe we will emerge in a stronger position relative to our competitors.”
Victory has cut its casual workforce by 40 per cent and moved its marketing spend online. Almost half of its landlords had agreed to reduce or defer lease obligations with discussions ongoing with others.
Shares fell by 12 per cent this morning to 45 cents. The cap raise is priced at 37.5 cents per share – a 27 per cent discount to yesterday’s price.