Bethunes signals capital raise will come if and when investment opportunity arises
Bethunes Investments [NZX: BIL], formerly known as Mowbray Collectables, will look to raise new capital if it can successfully find an investment opportunity to execute.
Chairman Chris Swasbrook told shareholders at today's annual meeting in Auckland that the company has made its first investment into an ASX-listed company and has been buying shares when opportunities present themselves.
"Bethunes is currently in the initial stages of a counter-cyclical investment into the New Zealand agricultural sector," say slides accompanying Swasbrook's presentation published on the NZX. "If the investment comes to fruition it will provide an investment exposure not readily accessible to institutional or individual investors."
The Wellington-based company said it expects to raise more capital to meet future investment plans and would undertake a share consolidation at that time. Still, it has enough cash on hand to meet two years of annual operating costs of about $225,000 plus GST.
"We therefore, would like to signal to shareholders the directors' intention to raise additional capital when/if we have an opportunity to execute on a new investment," the company said. "The directors anticipate being able to update shareholders further in October 2016."
Bethunes changed its name after founder John Mowbray bought subsidiaries Mowbray Bethunes and Wildlife Philatelic, leaving the company with auction house Webb Galleries as its sole trading entity, which it then went on to sell and pursue new investment options.
The shares last traded at 0.5 cents, having plunged 71 percent so far this year to value the company at $575,000.