- TasFoods (TFL) shares have been locked up ahead of an equity raise announcement
- The ASX will keep the Tasmanian food specialist’s stock frozen until Thursday, August 27, unless the company can make an announcement about completing the “accelerated portion” of the capital raising earlier
- TasFoods released its quarterly report on July 30, tabling over $16 million in customer receipts
- It wasn’t enough, however, to keep the company’s operating cashflow in the black; TFL went cashflow-negative by $62,000 over the June quarter
- Still, TasFoods ended the period with nearly $1.3 million in the bank — coupled with an extra $2.3 million in unused finance facilities, the company has enough capital to keep operating at similar levels for 58 more quarters
- TasFoods shares closed worth 10.5 cents on August 24
TasFoods (TFL) shares have been locked up ahead of an equity raise announcement.
The ASX will keep the Tasmanian food specialist’s stock frozen until Thursday, August 27, unless the company can make an announcement about completing the “accelerated portion” of the capital raising earlier.
TasFoods released its quarterly report on July 30, tabling over $16 million in customer receipts.
It wasn’t enough, however, to keep the company’s operating cashflow in the black; TFL went cashflow-negative by $62,000 over the June quarter.
The vast majority of the company’s operating cashflow was chewed up by product manufacturing and operating costs, leaving just $4 million in receipts to cover other expenses over the quarter.
TasFoods ended the period with nearly $1.3 million in the bank. However, coupled with an extra $2.3 million in unused finance facilities, the company has enough capital to keep operating at similar levels for 58 more quarters.
As a result, shareholders might be surprised the consumer discretionary company is opting to raise fresh capital.
One week before the quarterly announcement, TasFoods conducted its annual general meeting.
Speaking to the current market uncertainty and the “tougher economic climate,” Managing Director and CEO Jane Bennett thanked shareholders for their continued support.
“The diverse nature of the TasFoods customer base and product mix ensures the core business has a strong future despite the ongoing uncertainty in current markets,” Jane stated.
“The board and management are developing a new strategic plan that addresses the risks and opportunities emerging for the business to set the future direction,” she concluded.
TasFoods shares closed worth 10.5 cents on August 24