- New Zealand Coastal Seafoods (NZS) has announced a fully underwritten rights issue to raise up to $1.81 million
- Under this rights issue, eligible shareholders are entitled to one new share for every three shares held
- They will also receive one free attaching option for every threes shares subscribed for
- The money raised will be used to fund the next stage of NZS’ growth strategy, working capital, and costs associated with the rights issue
- NZS has dropped 13.3 per cent on the market and shares are trading for 1.3 cents each
New Zealand Coastal Seafoods (NZS) has announced a fully underwritten rights issue to raise up to $1.81 million.
Under this rights issue, eligible shareholders are entitled to one new share, at an issue price of $0.01 per share, for every three shares held.
They will also receive one free attaching listed option for every three shares subscribed for.
Each listed option will be exercisable at $0.0275 and will expire on July 25 2022.
Approximately 181,931,334 shares and 60,643,778 options will be issued as part of this rights issue.
The $1.81 million raised will be used to execute the next stage of NZS’ growth strategy by primarily focusing on building distribution, scale, margins, and brand development.
The money will also go towards working capital and costs associated with the rights issue.
“We are pleased to offer existing shareholders this opportunity to take up the rights issue, with the capital to be applied to the further execution of the company’s growth strategy,” Chairman Winton Willesee commented.
“Since NZCS listed in August 2019, the company has continued to achieve milestones across three pillars of our strategy,” he added.
The rights issue will open on June 2 and close on June 16. Shares will then be issued on June 29 and begin trading on the ASX on June 30.
NZS has dropped 13.3 per cent on the market and shares are trading for 1.3 cents each at 2:08 pm AEST.