- Oliver’s Real Food (OLI) has kicked off a series of funding initiatives in hopes of improving the company’s financial position
- The first initiative is a placement for $2.5 million, which will fund working capital and investments in post-COVID opportunities
- Oliver’s Real Foods will also conduct a share purchase plan, which will be capped at $1.5 million
- Further, the company has negotiated a $1 million reduction in the cash covenants of its loan with PURE Asset Management
- Oliver’s Real Food has been suspended from trading by the ASX, and last traded at 5.9 cents per share
Oliver’s Real Food (OLI) has kicked off a series of funding initiatives in hopes of improving the company’s financial position. The company has also stated that the initiatives are intended to prepare the business for growth.
The first initiative is a placement, in which Oliver’s Real Food will issue shares at 3 cents each. The company currently has binding commitments to raise $2.5 million, via a two-tranche issue of shares.
During the first tranche, 40 million shares will be issued, producing $1.2 million in immediate proceeds. During the second tranche, 43,333,333 shares will be issued, producing the other $1.3 million in proceeds.
However, the second tranche is subject to shareholder approval, which Oliver’s Real Food will seek at a general meeting in May.
The $2.5 million in proceeds from the placement will fund working capital, and investments that take advantage of post-COVID opportunities.
The company’s second funding initiative is to invite investors to participate in a share purchase plan. Each investor will be able to purchase up to $30,000 in shares, at a price yet to be determined by the board of Oliver’s Real Food.
The share purchase plan will be capped at a maximum of $1.5 million, and investors may potentially be subject to scale-backs.
The company’s third funding initiative has to do with its current $5 million loan from PURE Asset Management. After negotiations, PURE has agreed to a $1 million reduction in the cash covenants of the loan, effective from March 5, 2021.
PURE Assets Management will also take part in the company’s placement, with $600,000 of support.
Oliver’s Real Food has been suspended from trading by the ASX, and last traded at 5.9 cents per share. The company hopes that the announcement about its funding initiatives will reaffirm the ASX’s confidence in the business.