New Zealand-based fruit company Seeka Limited [NZX:SEK] has announced a new capital raising strategy to be implemented over the course of the next three years.
The scheme includes 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 company said in an NZX filing.
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.
The company also announced it would introduce a new Grower Share Scheme and Employee Share Scheme in the first quarter of 2019, as many employees and grower suppliers are shareholders.
“We are excited about Seeka’s plans for growth and our continual pursuit towards being New Zealand’s leading orchard-to-market business,” said Fred Hutchings, chairman of Seeka.
“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.