Join our daily newsletter At The Bell to receive exclusive market insights
- Pure Foods Tasmania (PFT) has scooped up an additional $5.3 million in cash after successfully closing a convertible note offering
- The food business announced it was planning to raise extra capital earlier this week to help it grow its plant-food offerings
- Under the offering, the notes have a two year term, attract a 7.5 per cent interest rate and their conversion price of roughly 50 cents each
- The notes will be issued in two seperate tranches, with the second $1.5 million tranche subject to shareholder approval
- Pure Foods Tasmania shares have resumed trading and ended Thursday down 1.77 per cent at 55.5 cents each
Pure Foods Tasmania (PFT) has scooped up an additional $5.3 million in cash after successfully closing a convertible note offering.
The food business first announced it was planning to raise extra capital earlier this week when it placed its shares in a trading halt.
The company said it would use the additional capital to help it grow its plant-food offerings and increase the distribution of its potato and gravy products.
PFT Managing Director and CEO Michael Cooper said the business would also look at additional acquisitions.
“We will continue to target complimentary, and value adding acquisitions to drive our growth and position the company as a leader in the rapidly growing plant-based food sector,” Mr Cooper said.
“The funds raised through the offering will provide the capital for the company to continue to grow the business via product innovation and acquisition and is well positioned to drive another year of growth in FY22 and beyond.”
Under the notes offering, each note attracts a 7.5 pr cent interest rate and has a conversion price of roughly 50 cents each. The notes have a two-year term, however Pure Foods said there was the possibility of a one-year extension. They will be issued in two seperate tranches worth $3.8 million and $1.5 each, with the second tranche subject to shareholder approval.
After resuming trade, Pure Foods Tasmania shares have ended Thursday down 1.77 per cent at 55.5 cents each.
