Retail Food Group (RFG) says it will raise $38 million through the issue of new shares for potential new acquisitions and to fund the purchase of the Crust pizza chain.

RFG, which is behind brands such as Brumby’s, Donut King and Michel’s, said it would issue 13.6 million ordinary shares with a floor price of $2.80 per share.

Petra Capital would conduct the capital raising via a book-build with institutional and sophisticated investors, RFG said in a statement on Thursday.

The company said it would also offer a share purchase plan to existing shareholders to raise up to $7 million.

RFG chief executive Tony Alford said the capital raising would fund the Crust transaction, along with “other acquisitive activity”.

Separately, RFG said on Thursday it had revised the terms of its transaction for the purchase of the Crust franchise following due diligence and discussions with Crust vendors.

Under the revised deal, RFG will pay $41 million for Crust in the form of cash and RFG shares, with potential additional payments of up to $4 million 24 months after the purchase should Crust meet certain targets.

Previously, the deal was for $24 million to be paid in cash and RFG shares immediately, with an additional payment a year later based on seven times Crust’s adjusted earnings before interest and tax less $24 million.

Also, RFG said it had entered into an asset purchase agreement for four pizza and pasta outlets in the ACT, which would be converted to Pizza Capers stores.

At RFG’s request, the company’s shares were suspended from trade on Thursday pending the announcement of the capital raising, and were not expected to resume trade until Monday, October 8.

The stock last traded at $3.00.