Seeka Limited has today announced a new capital raising strategy to be implemented over the course of the next 3 years, including a Rights Issue, an issuance of shares under a new Grower Share Scheme and an issuance of shares under Seeka’s existing Employee Share Ownership Scheme.
The purpose of this capital raising strategy is to strengthen its balance sheet and provide Seeka with the financial flexibility and freedom to pursue its growth strategy of becoming New Zealand’s leading orchard-to-market business.
The first step is for Seeka to undertake a fully underwritten pro rata renounceable Rights Offer commencing on 21 November 2018 and closing on 7 December 2018.
This Rights Offer:
- Seeks to raise approximately NZ$50 million of new equity via a pro rata 1 for 1.5 Rights Offer at NZ$4.25 per share (fully underwritten by First NZ Capital Group Limited).
- Includes a bookbuild to be undertaken at the end of the Rights Offer period for any shortfall. As a consequence, shareholders not taking up all of their rights (including ineligible shareholders) may receive value for their rights not taken up.
Seeka also announces its intention to introduce a new Grower Share Scheme and Employee Share Scheme in the first quarter of 2019 to further align the interests of Seeka, its employees and grower suppliers (many of whom are shareholders).
Chairman of Seeka, Fred Hutchings, said: “We are excited about Seeka’s plans for growth and our continual pursuit towards being New Zealand’s leading orchard-to-market business. Seeka will use the capital raised to strengthen our balance sheet, repay bank debt, undertake planned capital expenditure and give us greater financial flexibility and freedom to deliver better value for our shareholders.”
Further sales of the Northland orchard portfolio are expected to take place in the next twelve months, which together with other initiatives will further reduce net debt during the 2019 financial year.
In FY2019, Seeka expects to undertake approximately $32 million of capital expenditure, which includes development of the Kerikeri and Oakside sites to improve capacity efficiency, development of long term lease orchards and maintenance capital expenditure.
For more information:
Michael Franks Seeka Chief Executive +64 21356516
Stuart McKinstry Seeka Chief Financial Officer +64 212215583