- Wattle Health (WHA) has officially launched its new rights issue offer to fund the Blend and Pack (B&P) buyout
- The infant formula producer hopes to raise up to $40 million with shares offered at a price of 40 cents each
- Wattle has been trying to seal the Blend and Pack acquisition since last year but has been unlucky in raising the funds needed
- The company has been in a trading halt since last year and shares last traded for 47.2 cents each
Wattle Health (WHA) has officially launched its non-renounceable pro-rata rights issue offer to fund the Blend and Pack (B&P) acquisition.
The offer will be to eligible shareholders and will include up to 99,303,174 shares.
New shares will be offered on a one-for-two basis to shareholders within Australia or New Zealand at an offer price of 40 cents each to raise up to $39.7 million.
The infant formula company has been trying to seal the Blend and Pack acquisition since late last year but, has been unlucky in raising the funds needed to increase its five per cent stake in B&P to 80 per cent.
Wattle launched a four-for-five rights issue to raise over $62 million but walked away with a mere $12 million.
So, keeping its eye on the prize, Wattle was in discussions with Mason Financial Holdings, the owner of B&P, to get its 80 per cent stake in the dairy equipment manufacturing company.
The new shares will be fully paid ordinary shares, will rank equally with Wattle’s existing issued shares and it will apply to the Australian Securities Exchange (ASX) for the official quotation of the new shares.
The ASX granted the baby formula producer a waiver to permit the rights issue. However, its securities are not reinstated to official quotation prior to the shareholder’s approval meeting next month.
Shares last traded for 47.2 cents and trading is yet to reopen.