VENU completes $86.25 million capital raise to strengthen balance sheet

Venu Holding Corporation (NYSE AMERICAN: VENU) closed an $86.25 million capital raise, according to a company press release. The Colorado Springs-based entertainment venue operator used a portion of the proceeds to retire a short-term purchase liability associated with land in Centennial, Colorado, where the company plans to develop an indoor live entertainment destination and restaurant.

The capital raise supports VENU's strategy of operating with minimal debt. The company reported that its loans and mortgages represent just over 1% of the overall appraised value of its completed or in-development project portfolio, with appraisals determined on an as-completed basis for development stage projects.

"Our philosophy has always been to build a durable company that can grow without relying on excessive leverage," said JW Roth, founder, chairman and CEO of VENU. "By maintaining a disciplined capital structure, we keep occupancy costs low and protect strong operating margins."

VENU operates with what it describes as essentially no traditional debt encumbering its real property assets and development portfolio, excluding forgivable municipal development guarantees. These municipal guarantees are interest-free and fully forgivable upon project completion, serving as collateral with public-private municipal partners during construction.

The company owns and operates entertainment venues including Ford Amphitheater, Sunset Amphitheaters, and Phil Long Music Hall. VENU has venues operating and in development across Colorado, Georgia, Oklahoma, and Texas.

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