- Pure Foods Tasmania (PFT) is seeking to raise up to $5.95 million through a placement and entitlement offer
- The placement is raising $2.55 million through the issue of 15.15 million new shares to institutional and sophisticated investors priced at 16.5 cents
- The entitlement offer is looking to raise another $3.4 million with shareholders to receive one new share for every three shares held
- Pure Foods plans to use the money to accelerate growth, improve operations and invest in product expansion
- PFT is in a trading halt and shares last traded at 19 cents on July 27
Pure Foods Tasmania (PFT) is seeking to raise up to $5.95 million through a placement and entitlement offer.
Under the placement, the company will issue 15.15 million new shares to institutional and sophisticated investors to raise $2.55 million.
Each share will be priced at 16.5 cents each which represents a 13.1 per cent discount to PFT’s closing price on July 27.
The entitlement offer will aim to raise a further $3.4 million if all rights are taken up. Eligible shareholders will receive one new share for every three shares they hold at the same price as the placement.
Pure Foods Tasmania plans to use the funds from the placement and entitlement offer to accelerate growth by investing in working capital, new products and marketing, to drive production efficiencies and invest in product expansion opportunities.
The company has a portfolio of brands and businesses including Woodbridge Smokehouse, Tasmanian Pate, Daly Potato, Pure Tasmanian Seafood, The Cashew Creamery, and more.
“This capital raising significantly supports our continued growth and development of premium products in its existing brands and plant-based food markets via increased market penetration and distribution,” Chairman Malcolm McAully said.
The placement is expected to be completed on Monday, August 1, with shares to settle on Tuesday, August 2, and be allocated on the following day.
As for the entitlement offer, it will be open from Wednesday, August 3 until Tuesday, August 23. New shares will be allocated by the end of the month.
PFT is in a trading halt and expects to come out of the halt on Monday, August 1. Shares last traded at 19 cents on July 27.