MUTARE – Tanganda Tea Company Limited, a horticulture large listed on the Zimbabwe Stock Exchange (ZSE), is finalising plans to lift US$8 million by a renounceable rights provide, as a part of a broader technique to boost its capital construction and diversify shareholder choices.
Through a renounceable rights provide, present shareholders are afforded the chance to amass extra shares within the firm at a preferential price, whereas additionally retaining the flexibleness to switch their rights to different buyers in the event that they so select.
The firm introduced that it’s getting ready a round to shareholders containing particulars of the rights provide and a proposed secondary itemizing on the Victoria Falls Stock Exchange (VFEX).
The rights provide, which is topic to regulatory approval, can be issued to present atypical shareholders in proportion to their shareholding. The firm plans to make use of the proceeds from the rights provide to help its development initiatives.
In addition to the rights provide, Tanganda Tea Company Limited additionally plans to create a brand new class of shares, generally known as Class A atypical shares, which can be listed on the VFEX as a secondary itemizing.
This transfer is meant to offer buyers with higher flexibility and entry to the corporate’s shares.
The firm has suggested its shareholders to train warning when dealing in its shares, because the transactions might have a fabric impact on the corporate’s share value.
A round to shareholders and a discover to convene an Extraordinary General Meeting (EGM) to contemplate and approve the transactions can be issued sooner or later.
Following a reevaluation by its board of administrators, Tanganda Tea Company, late final yr, revised its earlier plans. Initially, the corporate had introduced its intention emigrate to the US dollar-denominated VFEX and undertake a renounceable rights provide to lift US$7.7 million.
However, in a recent cautionary assertion launched final December, the corporate disclosed that the board had now proposed another technique geared toward enhancing the corporate’s capital construction and increasing its shareholder choices.
