Cobram Estate Olives completes undersubscribed share purchase plan
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The news: Cobram Estate Olives has completed a $6.1 million non-underwritten share purchase plan to support its growth strategy in the US.
Another $2 million worth of shares that were not taken up have been placed with “a long-term existing shareholder” that could not participate in the plan.
The numbers: The total $8.1 million raised is below the $10 million that it had hoped to raise through the share purchase plan.
The new shares were issued at $3.20 each, which is a 0.9% discount on Cobram’s last closing price, on 5 September. This is in line with the $175 million institutional placement that was completed on 9 September.
The context: The 2.5 million new shares issued under the share purchase plan and the shortfall placement are scheduled to be allotted on 6 October before they are quoted on the ASX on 7 October.
Funds will be used to support Cobram’s growth strategy in the US, which includes purchase of additional freehold farmland and the development of about 1,600 hectares of olive groves on that land.
What they said: “We were delighted to provide our shareholders the opportunity to participate in the SPP at the same price as the institutional and sophisticated investors in the placement,” Cobram chair and co-founder Rob McGavin said.
“We are grateful to the shareholders who participated for their continued support, and we look forward to putting these funds to work to accelerate our growth initiatives in the USA.”
The source: ASX
