Real Good Food has secured £2.5m to aid its turnaround from a funding giant which recently backed Cath Kidston.
The Liverpool-headquartered company has agreed the 12-month deal with Hilco Private Capital. The funding will sit alongside its existing £6.2m facility with Leumi ABL.
As of 2pm, shares in the group had rocketed by 133% to 2.4p, their highest since July.
The deal comes after Real Good Food reported pre-tax losses of £18.9m for the 12 months to March 31, 2022, compared to losses of £6.1m in the prior year.
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The listed company also confirmed that its revenue increased from £37.2m to £40.4m over the same period.
Those figures came after the company warned more jobs are at risk of being cut as part of "radical reforms" to "eliminate overhead costs".
At the time, the company also said that its current financial year is "expected to be a very challenging and loss-making" but that it is being "strengthened to be more resilient and ready to benefit from a more favourable trading environment".
Speaking about the new deal, executive chairman Mike Holt said: "We are delighted that new funding has been secured to support the radical reform of RGF which is intended to reduce costs, protect revenues and preserve the inherent value of the group.
"With support from both customers and employees, we are making good progress on the required reforms and several major customers have already agreed to significant price re-sets.
"We are confident that the right actions are being put in place to return the business to sustainable profitability and being cash generative.
"I am particularly pleased that Leumi ABL continues to support the group and that Hilco has provided the new funds required.
"I would also like to thank our suppliers for their forbearance over recent months pending this funding being secured."
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