Drive-in cinema secures debt and equity deal

One Stop Business Finance has backed film company Moonlight Drive In Cinemas in a debt and equity deal.

Scarborough-based Moonlight Drive In Cinemas is set to open its first venue in Crossgates, close to the A64 in the town, which opens for business on Friday 24 July.

The drive in cinema will operate on a mobile basis and is already pre-booked for showings in a number of other locations for a “Christmas tour”.

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It will show a mixture of classic and contemporary films at the site.

As part of the deal, Andrew Mackenzie, chief executive of One Stop Business Finance, has joined the business’ board.

Ben Stonehouse, manager of Moonlight Drive In Cinemas, said Friday’s opening “can’t come fast enough”

He said: “We have mobilised the site, recruited and trained our team and completed rehearsals for the first night.

“As most people would guess, our first showing will be Grease but we also plan to show Dirty Dancing, Jaws, Ted 2 and Fast and Furious 7 over the course of the first two or three weeks.”

Mr Stonehouse said the combination of cash injection and business expertise from One Stop Business Finance has “enabled the dream of running a drive in cinema to become a reality”

He said: “By adding Andrew to our management board as a shareholder in the business we know that we have access to a vast network and guidance whenever we need it.”

Mr Mackenzie said: “The majority of our business relates to secured lending and this is the first transaction we have done which takes an equity stake in our client’s business and also provides a loan from our own funds.

“The idea of a number of Moonlight Drive In Cinemas across England excites me and the high calibre of Ben and his team, the young entrepreneur running the business, made it very investable.”

One Stop Business Finance said it is seeking further funds to undertake more of its own lending.

The business is an accredited broker/sponsor with a number of peer to peer lenders and also has partners in hire purchase lending, invoice finance and commercial property.