Farm Pride Foods Extends $6.17 Million Rights Issue Timetable
FRM (FRM) Share Update July 2024 Monday 29th
Farm Pride Foods Announces $6.17 Million Rights Issue Extension
Farm Pride Foods Ltd (ASX: FRM) has announced an extension to its $6.17 million Rights Issue, providing shareholders additional time to participate in this investment opportunity.
Instant Summary:
- Farm Pride Foods extends Rights Issue closing date by two weeks.
- Eligible shareholders can subscribe for three new shares for every seven shares held.
- Rights Issue priced at $0.10 per new share.
- Opportunity for shareholders to subscribe for additional shares from the shortfall.
Rights Issue Details
Farm Pride Foods Ltd (ASX: FRM) has announced an extension to its non-renounceable, fully underwritten pro-rata entitlement offer (Rights Issue) to raise approximately $6.17 million before costs. The Rights Issue provides eligible shareholders with the opportunity to subscribe for three new fully paid ordinary shares for every seven fully paid ordinary shares held as of 7:00 pm (Melbourne time) on Thursday, 4 July 2024. The Rights Issue is priced at $0.10 (10 cents) per new share.
Eligible shareholders who accept their Rights Issue entitlements in full will also have the ability to subscribe for additional new shares from the Rights Issue shortfall, up to a further 100% of their Rights Issue entitlement, subject to applicable laws and potential scale-back as described in the offer booklet dated 1 July 2024.
Updated Timetable
The company has resolved to extend the closing date of the Rights Issue by two weeks. Below is the updated indicative timetable for the Rights Issue:
- Release of updated Appendix 3B for the Rights Issue: Friday, 28 June 2024
- Lodgement of Rights Issue Offer Documents with ASX: Monday, 1 July 2024
- Ex-Date: Wednesday, 3 July 2024
- Record Date for identifying eligible shareholders: Thursday, 4 July 2024
- Rights Issue opening date: Tuesday, 9 July 2024
- General Meeting to approve loan conversions: Wednesday, 31 July 2024
- Conversion of Director loans (subject to approval): Thursday, 1 August 2024
- Last day to extend the Rights Issue Closing Date: Tuesday, 13 August 2024
- Closing Date for the Rights Issue: Friday, 16 August 2024
- New Shares quoted on a deferred settlement basis: Monday, 19 August 2024
- Last day for FRM to announce results of the Rights Issue: Friday, 23 August 2024
- Last day for issue of New Shares to Underwriter: Friday, 6 September 2024
This timetable is indicative only and subject to change.
The extension of the Rights Issue provides shareholders with additional time to consider their participation, potentially increasing the overall subscription rate. The successful completion of the Rights Issue will strengthen Farm Pride Foods' capital base, supporting its ongoing operations and growth initiatives. However, the dilution effect of new shares may impact the stock price in the short term.
Investor Reaction:
Analysts are likely to view the extension positively as it allows more shareholders to participate, potentially leading to a higher subscription rate. However, there may be concerns about the dilution of existing shares and its impact on the stock price.
Conclusion:
Investors should take note of the extended timetable and consider participating in the Rights Issue to capitalize on this investment opportunity. Monitoring the final subscription rates and the company's use of the raised funds will be crucial in assessing the long-term impact on Farm Pride Foods' stock.