Veritas to offer up to $25M of shares in April
Veritas to offer up to $25M of shares in April, has $10M facility with ANZ
March 1 (BusinessDesk) - Veritas Investments, the shell company that’s acquiring the Mad Butcher franchisor business, aims to raise up to $25 million in the public share offer next month and has secured a $10 million loan facility from ANZ New Zealand.
The capital raising will fund the $20 million cash component of its $40 million purchase, with the balance to be met with an issue of ordinary Veritas shares.
Craigs Investment Partners is underwriting $12.7 million of the share sale though it has subsequently gained sub-underwriting agreements with Collins Asset Management, a company associated with director Tim Cook, for $2.5 million, and from RMI Holdings, associated with director Phil Newland, for $2 million.
The company has received firm commitments for $10.2 million of shares, it said.
Veritas shares last traded at $2 on the NZX, valuing the company at $4.58 million.
The capital raising details were included in Veritas’s results for the six months ended Dec. 31. Operating revenue was $22,400 compared with $358,016 a year earlier. The first-half net loss narrowed to $561,154 from $1.6 million a year earlier, when it recognised a $1.3 million loss on the sale of investments.
Veritas was created from the shell left by the winding up of Salvus Strategic Investments, which sold assets and returned capital to shareholders.