Dave & Buster's Issues Another $100 Million of Stock
Dave & Buster's Entertainment (NASDAQ: PLAY) still needs cash. The restaurant and gaming chain announced on Monday that it has struck a deal to sell over $100 million worth of its stock in exchange for a capital infusion. The offering could grow to a maximum of $115 million within the next 30 days, the company said.
Dave & Buster's stores have been closed since March due to the COVID-19 pandemic, and management has already announced plans to push cash outflow to less than $50 million per week during the shutdown. Today's stock issuance demonstrates that the financial strain is still mounting.
The chain plans to use the proceeds to "strengthen its balance sheet," executives said in a press release, "principally as necessitated by the effects of the COVID-19 outbreak on its business."
Source Fool.com
