Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
(BusinessDesk) - Burger Fuel Worldwide, which is expanding by licensing its burger chain concept in the Middle East, raised $2 million selling shares at a discount to funds run by Milford Asset Management.
The Auckland-based company will issue 1.6 million shares at $1.25 apiece to the Milford Active Growth Fund and the Milford Active Growth KiwiSaver Fund, it says in a statement today.
Shares jumped 7.1 percent to $1.50 on the NZX.
The Milford funds are also acquiring 800,000 shares at the same price from Mason Roberts Holdings, the investment vehicle of chief executive Josef Roberts and partner Chris Mason. As a result of the transactions the funds will own 4.6 percent of the company, it says.
Mason Roberts remains the biggest shareholder with 83%and other public shareholders own 12.4%.
Chairman Peter Brook says that even though the stock has traded as high as $1.41 recently, volumes were light and the price "represented good value to all existing shareholders." Grant Samuel advised the company on the transactions.
"This will allow the company to accelerate investment, giving it the ability to establish a stronger base for future earnings," Brook said.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Carry on: 250 A320s for EasyJet, lower Changi fees and more
- 'I guess I'm back to piracy' — Auckland man as HBO NOW follows through on cut-off threat
- The Moxie Sessions: Will the last person out of Ohura please turn out the lights (but for the love of God don’t unplug the navigation beacon)
- Spark's market cap slips, as investors weigh increased competition
- Capital gains tax, Brierley's final bat, crackdown on developers