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The City Lodge Hotel Group has released an announcement, which states: “Given the extreme uncertainty facing the Company and the losses currently being incurred due to COVID-19, the associated lockdown and travel ban and furthermore given that it is not yet known when our hotels can re-open and return to above breakeven occupancy levels, together with the high level of debt on the City Lodge balance sheet, which includes the Company’s guarantee of the BEE Funding (of which further details are
set out in the attached document), the Board believes it prudent to put in place the necessary measures to be able to proceed with an underwritten, renounceable Rights Offer of ZAR1.2 billion, which Rights Offer price is expected to be at a discount to market, as per normal market practice.”

The full announcement can be viewed here.