Trilogy announces $25m capital raise

Trilogy International [NZX:TIL] is doing a large capital raise to repay debt and fund future growth and acquisitions. 

A trading halt has been put on the stock until the bookbuild is complete.

The beauty product and scented candle maker aims to raise $20 million through a placement, fully underwritten at $3.70 per share.

Trilogy is also offering a non-underwritten share purchase plan to eligible shareholders and employees, to raise up to $5 million. Shareholders can subscribe for up to $15,000 new shares.

The equity raised will be used to repay debt, continue brand and market development and fund acquisition opportunities.

Majority owner The Business Bakery is selling $30 million of shares, at the same $3.70 price.

The Business Bakery is the investment vehicle for 42 Below Vodka founders Geoff Ross, Stephen Sinclair and Grant Baker, which underwrote Trilogy’s $10.1 million initial public offering in 2010 and owns 49% of the company.

A statement to the NZX says it is selling down its shareholding due to strong demand and to balance its investment portfolio.

It will remain a 30% shareholder after the capital raise, which will increase Trilogy's liquidity, with a free float of about 70%.

UBS is acting as sole lead manager and underwriter for the raise.

The company announced it also intends to pursue an ASX foreign exempt listing and expects to start trading on the ASX in the second half of 2016.

Trilogy chief executive Angela Buglass says Australia presents the largest near-term opportunity for the business, with increasing interest from Australian investors.

The stock is at $4, having increased 340% in the past 12 months. 

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