Original Juice Company: Transformative Merger and Capital Raise
OJC (OJC) Share Update November 2024 Sunday 17th
Original Juice Company Announces Transformative Merger and Capital Raise
The Original Juice Company (ASX:OJC) has announced a significant step forward with the lodgement of its prospectus for a transformative merger involving SPC Global Limited and Nature One Dairy. This strategic move is set to reshape the company and its market presence.
Instant Summary:
- OJC to merge with SPC and Nature One Dairy's powdered milk business.
- Capital raise of $1 million to $5 million to support re-listing.
- Eligible shareholders and SPC employees can participate in the offer.
- Company expected to resume trading in mid-December 2024.
Merger Details
The Original Juice Company has lodged a prospectus as part of its plan to merge with SPC Global Limited and the powdered milk business of Nature One Dairy. This merger aims to create a leading food and beverage company with a strong presence both in Australia and globally.
The merger is a strategic move to enhance OJC's market position, leveraging the strengths of SPC's established brand and Nature One Dairy's expertise in powdered milk. This combined entity, referred to as the Merged Group, is expected to offer a diverse range of products and expand its reach in the food and beverage sector.
Capital Raise and Re-listing
To support the merger and its re-listing on the Australian Securities Exchange (ASX), OJC is conducting a capital raise of between $1 million and $5 million. This capital raise is not underwritten and includes two offers: a Priority Offer for select investors and SPC employees, and an OJC Shareholder Offer for eligible existing shareholders.
The capital raise involves issuing new fully paid ordinary shares at $1.50 per share. The funds will be used to facilitate the merger and support the company's growth initiatives post-merger.
Timetable and Next Steps
The indicative timetable outlines key dates such as the opening and closing of the offers, the effective date for share consolidation, and the anticipated date for the resumption of trading. The company aims to complete the merger and capital raise by mid-December 2024, with trading expected to resume shortly thereafter.
This merger is poised to significantly enhance OJC's market position by combining resources and expertise from SPC and Nature One Dairy. The capital raise will provide the necessary funding to execute this strategy, potentially leading to increased investor confidence and stock value. However, the success of the merger and its integration will be crucial in realizing these benefits.
Investor Reaction:
Analysts are likely to view this merger positively, given the potential for increased market share and product diversification. However, they will also be cautious about the execution risks associated with integrating three distinct businesses.
Conclusion:
Investors should closely monitor the progress of the merger and capital raise, as well as the company's re-listing on the ASX. The strategic merger offers significant growth potential, but careful observation of the integration process will be essential for assessing long-term impacts.