Manuka honey retailer Comvita is undergoing a refinancing process, in what it describes as a “significant milestone”.
Completed alongside the Singaporean consumer group, Fraser and Neave, Comvita is targeting $24.8 million (NZ$30 million) of capital through the issuance of new shares at an offer price of $0.54.
Bridget Coates, Comvita’s chair, said this will allow the company to operate under a structure that’s in the best interest of its shareholders.
“The capital raise and refinancing package mark a significant milestone for Comvita as we continue to execute against our strategic plan,” Coates added. “Together, they provide the stability and financial flexibility to build on the company’s improved position and deliver long-term value for shareholders.”
At the same time, Comvita has confirmed the successful execution of a refinancing package, if the capital raise is successful.
This refinancing package will create a core debt facility of up to $24.8 million, with a term of approximately two-and-a-half years.
“There is work ahead – and real opportunity. We have the fundamentals, the team, and now the financial foundation to strengthen our global position in Manuka honey, prepare to win the next phase of category development and realise Comvita’s full potential over time,” Karl Gradon, Comvita CEO, said.
“We thank our loyal shareholders for their ongoing support and look forward to executing the next stage of our strategy from a significantly strengthened position.”
