Investor Backs Charlie’s Growth Strategy
Investor Backs Charlie’s Growth Strategy With $2.5million
02 February 2006
Premium beverage company Charlie’s Group Limited has taken a further significant step in building its financial base in line with its business plan. The company has made a placement of shares raising $2.5 million (including transaction costs) to Auckland-based investment company Collins Asset Management.
The placement has been made at 13 cents per share. $2 million from the net proceeds will be employed as the final instalment in the purchase of Phoenix Organics Limited, announced on 2 December.
This follows an earlier and smaller investment by Collins, in the underwritten placement made in December to part-fund the first instalment of the Phoenix Organics purchase.
Charlie’s chairman Roger Gower said the board was delighted that Collins had decided to make a significant further investment in the company. “This brings Collins’ shareholding to around 8.6 percent, making it the third largest shareholder – and one with a long-term investment philosophy compatible with our plans for further growth and development. It is a strong endorsement of our strategy and an expression of confidence in our continued growth and success.”
Tim Cook, director of Collins Asset Management, said: “We are delighted to be involved in a company with excellent management, strong brands and a range of high-quality products.”
The placement was facilitated by Mark Darrow of Auckland based Equity Investment Advisers.