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- Synlait Milk (SM1) has entered a trading halt as it prepares to tap investors for fresh capital
- The NZ-based dairy specialist will remain paused from trade until Wednesday, November 11, or when it’s able to provide details of the raise to the market
- Until that time, shareholders will have to wait and see just how much Synlait intends to raise and what the cash injection will support
- Last week, the company settled a legal dispute with former landowners, who had ties to a plot where the company’s Pokeno manufacturing plant stands
- Ultimately, the battle reached New Zealand’s Supreme Court, but the ASX 300-lister resolved the dispute with a non-material payout on Friday
- Synlait shares were up 8.63 per cent on Monday before the trading halt was announced, worth $5.54
Synlait Milk (SM1) has entered a trading halt as it prepares to tap investors for fresh capital.
The NZ-based dairy specialist will remain paused from trade until Wednesday, November 11, or when it’s able to provide details of the raise to the market.
Until that time, shareholders will have to wait and see just how much Synlait intends to raise and what the cash injection will support.
News of a capital raise follows Synlait’s legal update — last week, the company settled a dispute with former landowners, who had ties to a plot where the company’s Pokeno manufacturing plant stands.
Synlait began producing milk powder at the facility in September 2019, but the landowners argued the plot was zoned for farming, forestry or lifestyle developments. Ultimately, the battle reached New Zealand’s Supreme Court.
Since it resolved the dispute, the ASX 300-lister hasn’t revealed the settlement price, but confirmed it wasn’t material to the company.
Synlait shares were up 8.63 per cent on Monday before the trading halt was announced. Company stock is worth $5.54 at 2:33 pm AEDT.
