Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Moa raises $5.25 million in over subscribed rights offer

Moa raises $5.25 million in over subscribed rights offer

By Suze Metherell

Aug. 25 (BusinessDesk) - Moa Group, the unprofitable boutique brewer, raised $5.25 million in an oversubscribed discounted rights issue to shareholders to fund further growth plans.

The Auckland-based company sold 15.92 million new shares, at a ratio of one for every two shares already held, at an issue price of 33 cents, a 5 cent discount to its current share price of 38 cents, it said in a statement. The offer was 4.9 percent oversubscribed, meaning applicants for over-subscription will be scaled to receive about 70 percent of their offer.

The rights issue comes after it raised $500,000 from five institutional investors in July, selling 1.3 million shares to the unnamed investors at 38 cents, which was a 31 percent discount to its trading price at the time, bringing the total raised to $5.75 million.

"We are happy with the support we have seen from shareholders through the rights issue," said chief executive Geoff Ross. "The capital raising means we can continue focusing on our plans to create New Zealand's beer brand globally."

At the end of its financial year on March 31, the company had $4.1 million of cash reserves, down from $11.5 million a year earlier and said it was looking at a range of financing alternatives to ensure it had adequate capital resources to support its growth plans.

Its two cornerstone shareholders, Pioneer Capital and The Business Bakery, provided Moa with a letter of commitment to provide financial support enabling the group to continue to operate for at least a year, its annual accounts showed.

The shares have plunged some 74 percent from their November 2012 initial public offer price of $1.25 which raised $16 million in capital, much of which was to support construction of an expanded brewing operation, which has not occurred owing to delays in its efforts to gain a resource consent to allow its construction.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news