- Murray River Organics (MRG) is seeking expressions of interest from investors or businesses which may want to buy the food company
- MRG has been selling off its farms for the last few year, announcing on Wednesday it was in the process of divesting the last of its properties
- The organic food producer again flagged plans to raise capital and is seeking offers from equity funds or investors who want to take a strategic stake in MRG
- MRG also advised shareholders it was expecting an additional expense of $1.64 million to be recorded in its profit and loss statement for FY21
- The business has been suspended from trade since September when it last traded at 24.5 cents each
Murray River Organics (MRG) is searching for someone to takeover the food business.
The company announced on Wednesday it was seeking expressions of interest from investors or businesses which may want to buy the business.
The decision to find a buyer to takeover MRG was made after Lion Advisory carried out another strategic review of the company’s operations.
The company has been suspended from trade for months after failing to submit its FY21 Audited Financial Statements.
It’s also been selling off its various farms over the last year, with a sale in progress to divest its remaining properties.
Due diligence is currently underway by the prospective purchaser and the transaction should result in a multi-year off-take agreement for dried vine fruit supply.
Murray River Organics believes the sale will be completed by April 2022, with the funds from the divestment to be used to pay down its debt.
Along with the takeover and sales news, the organic food producer again flagged plans to raise capital.
MRG has been planning to undertake an equity raise for months now, as part of its wider transformation strategy into an organic FMCG producer.
Once the equity raise is complete, MRG plans to file its Audited Financial Statements for the 2021 financial year.
The company will need to add an additional expense of $1.64 million on the profit and loss statement, after issues emerged with a water lease commitment.
Before Murray River Organics was suspended from trade, shares were trading at 24.5 cents each.