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- New Zealand Coastal Seafoods (NZS) is looking to raise $5 million through a share purchase plan and top-up placement
- Of the $5 million, $3 million will be raised through the share purchase plan with NZS able to accept oversubscriptions or scale back as it sees fit
- To raise the remaining $2 million, the company will undertake a top-up placement to sophisticated, professional and institutional investors
- NZS will use the money from the share purchase plan and placement to enhance its sales team and distribution capacity, as well as complete upgrades at its factory
- Company shares are down 7.55 per cent and are currently trading for 4.9 cents each
New Zealand Coastal Seafoods (NZS) is looking to raise $5 million through a share purchase plan and top-up placement.
Of the $5 million, $3 million will be raised through the share purchase plan, with NZS able to accept oversubscriptions or scale back as it sees fit.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage costs.
The issue price of shares is not yet known but it will be based on a 15 per cent discount to the five-day volume-weighted average price.
The share purchase plan is underwritten by Canaccord Genuity, which will also act as lead manager to both the plan and placement.
The plan will open on September 10 and close on September 30. Shares will be issued October 7 and will begin trading on the ASX on October 8.
To raise the remaining $2 million, NZS will be undertaking a top-up placement to sophisticated, professional and institutional investors. Shares will be priced at the same amount as the placement.
NZS will use the money from the share purchase plan and placement to enhance its sales team and distribution capacity, as well as complete upgrades at its factory.
Funding will also be used for working capital and to cover costs associated with the plan and placement.
NZS is down 7.55 per cent and shares are trading for 4.9 cents each at 11:05 am AEST.
