Willdale to fresh capital raise

Willdale to fresh capital raise
Published: 09 April 2014
ZSE-listed manufacturing concern Willdale is seeking to raise fresh capital to meet working capital and re-tooling requirements.

The company, which has debts amounting to $6,6 million, will seek to raise $3,2 million through a rights offer that will be presented before shareholders at an extraordinary general meeting to be held by the company.

"The directors are of the view that the new capital raised will provide the company with an ability to improve production volumes, restructure its balance sheet and enjoy economies of scale," the firm said in a circular to shareholders.

The company says the rights issue will be in the form of 10 percent semi-annual redeemable cumulative preference shares.

At the EGM, Willdale will seek approval for the offer of 3 255 000, 10 percent semi-annual redeemable cumulative preference shares by way of a renounceable rights offer at a subscription price of $1 per preference share on the basis of one 10 percent preference share for every 546,24 ordinary shares already held.

The company will also seek to increase the company's authorized share capital from $100 000 divided into 2 billion ordinary shares of $0,00005 each to $150 000 divided into 3 billion ordinary shares of the same value through the creation of the cumulative preference shares.

Outstanding preference shares' par value balance as well as any outstanding dues to preference shareholders as at the fifth anniversary of the date of issue will be converted into ordinary shares out of the company's authorised unissued share capital.

Upon approval of the transaction, the firm will list all the preference shares on the Zimbabwe Stock Exchange.

The transaction will be underwritten by Old Mutual Life Assurance company.
- BH24
Tags: Willdale, Capital,

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