Jatcorp (ASX:JAT) aims to raise $6m to reduce debt and fund working capital

• Jatcorp (JAT) is aiming to raise $6 million through a share purchase plan to reduce debt and fund working capital
• The plan will allow existing shareholders to acquire up to $30,000 in new shares without any brokerage fees
• The shares will be offered at 1.9 cents, representing a 13.6 per cent discount to yesterday’s closing price
• The offer will open on Friday and close on March 4
• Shares were trading 9.09 per cent lower at 2 cents

Consumer goods developer and manufacturer Jatcorp (JAT) is aiming to raise $6 million through a share purchase plan (SPP) in order to reduce debt and fund working capital.

The SPP will allow existing shareholders to acquire up to $30,000 in new JAT shares without any brokerage, commissions or other transaction costs.

The new shares will be offered at 1.9 cents per share.

This represents a 13.6 per cent discount to yesterday’s closing price and a 15.5 per cent discount to the five day volume weighted average price over the most recent trading days.

The company will use the money to reduce debt and fund working capital.

With lower interest payments, the company said it will have more money available to meet the expected increases in inventory required to meet production requirements for initiatives.

Jatcorp manufactures and markets a portfolio of in-house branded fast moving consumer goods, focusing on growth opportunities in dairy products, particularly for the Chinese market.

The SPP offer will open on Friday and close on March 4.

Shares were 9.09 per cent lower at 2 cents at 10.21 am AEDT.