Moa Group [NZX: MOA], the unprofitable boutique brewer, raised $5.25 million in an oversubscribed discounted rights issue to shareholders to fund further growth plans.
The Auckland-based company sold 15.92 million new shares, at a ratio of one for every two shares already held, at an issue price of 33 cents, a 5 cent discount to its current share price of 38 cents, it said in a statement. The offer was 4.9 percent oversubscribed, meaning applicants for over-subscription will be scaled to receive about 70 percent of their offer.
The rights issue comes after it raised $500,000 from five institutional investors in July, selling 1.3 million shares to the unnamed investors at 38 cents, which was a 31 percent discount to its trading price at the time, bringing the total raised to $5.75 million.
"We are happy with the support we have seen from shareholders through the rights issue," said chief executive Geoff Ross. "The capital raising means we can continue focusing on our plans to create New Zealand's beer brand globally."
At the end of its financial year on March 31, the company had $4.1 million of cash reserves, down from $11.5 million a year earlier and said it was looking at a range of financing alternatives to ensure it had adequate capital resources to support its growth plans.
Its two cornerstone shareholders, Pioneer Capital and The Business Bakery, provided Moa with a letter of commitment to provide financial support enabling the group to continue to operate for at least a year, its annual accounts showed.
The shares have plunged some 74 percent from their November 2012 initial public offer price of $1.25 which raised $16 million in capital, much of which was to support construction of an expanded brewing operation, which has not occurred owing to delays in its efforts to gain a resource consent to allow its construction.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Pulse Energy investors get mixed messages on board's takeover view
- Scentre Group to sell three Westfield malls to NZ firms for $549m
- Joyce associates openly talking about leadership change
- Court protection sought for latecomers to James Hardie leaky homes class action
- Kelsey’s bid to put rocket under Groser fails
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’
- Tech commentator Paul Brislen discusses the Concept Envirochip ad
- Jason Walls breaks down the week's biggest news in macroeconomics