Jatenergy has announced a non-renounceable rights issue to raise AUD8.4m (US$5.6m) which the Australia-based infant-formula company will partly use to fund a recent acquisition.
The offer prices is AUD0.05 a share on the basis of one new share for every five held by eligible shareholders, according to a filing with the Australian Securities Exchange. The offer opens tomorrow (3 December) and closes on 13 December.
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The new shares will be issued on 20 December.
New South Wales-based Jatenergy said it will use AUD4m of the funds for instalment payments previously agreed in its deal for Australian Natural Milk Association (ANMA). Another AUD3m will finance new equipment and the construction of an expanded clean room, with the remainder for inventory and working capital purposes.
Jatenergy acquired 70% of Australian Natural Milk Association at the end of the summer for AUD14m. A total of AUD12m was to be paid in six cash instalments and the rest by issuing new shares. Melbourne-based ANMA produces infant-formula and other dairy products such as milk powders and fresh milk, and also holds an export license for China, a key market for Jatenergy.
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