Announcement
CORPACT: ALF: Renounceable Rights Issue Announcement and Market Update
08:30am
ALF
23/11/2020 08:30
CORPACT
PRICE SENSITIVE
REL: 0830 HRS Allied Farmers Limited
CORPACT: ALF: Renounceable Rights Issue Announcement and Market Update
23 November 2020
announce@nzx.com
RENOUNCEABLE RIGHTS ISSUE CAPITAL RAISE AND MARKET UPDATE
Rights Issue Capital Raise
On 9 November 2020 Allied Farmers Limited's (NZX:ALF) (Allied) advised in its
2020 Notice of Annual Meeting that it will offer eligible shareholders the
opportunity to participate in a pro rata renounceable rights issue at an
issue price of $0.50 cents per share through a rights issue of 1 new ordinary
share for every 3 existing ordinary shares held.
Allied is pleased to now confirm that it will open the pro rata renounceable
rights issue in early December 2020.
Shareholders will be able to apply for additional shares at the same price of
$0.50 cents per share through an oversubscription facility to take up
unexercised rights, and any rights that shareholders do not wish to take up
will be quoted and able to be bought and sold on the NZX.
Also as previously announced, if approved at the 2020 Annual Meeting, and
most likely after the renounceable rights issue, Allied proposes to commence
placements over the next 12 months of up to 10 million Allied Farmers shares
to existing shareholders and new investors at the same price of $0.50 cents
per share. These placements will potentially raise up to $5,000,000 of new
capital for Allied Farmers.
The timetable for the renounceable rights issue offer is as follows:
Announcement of the Offer 23 November 2020
Rights trading commences on the NZX Market 30 November 2020
Record Date for determining eligibility 7:00 p.m. on 1 December 2020
Opening Date and mailing/emailing of Offer documentation ("Ex-Date") 2
December 2020
Rights trading ends on the NZX market 11 December 2020
Closing Date (last day for online applications, or for receipt of the
Acceptance Form, with payment), unless extended 17 December 2020
Allotment and issue of New Shares 24 December 2020
Anticipated date of quotation of New Shares 24 December 2020
Statements mailed 31 December 2020
Market Update
In the first 6 months of this financial year prices for Allied's processed
veal and related products, appreciable proportions of which are ultimately
sold through food service channels and other Covid affected markets
internationally, have been significantly lower. The veal processing business
contribution has always been sensitive to market price movements outside of
our control, and accordingly, because it makes up a significant part of
revenues in the first 6 months of the financial year, in turn the interim
result has always being disproportionately impacted by the performance of
this business.
The ongoing effects of the drought earlier this calendar year and lower
market prices for livestock have also adversely affected commission revenue
in our livestock agency business. However, recently we are seeing more
encouraging signs with favourable weather and growth conditions contributing
to an improvement in farmer sentiment, sale tallies and prices. This gives
us cautious confidence in a stronger second half of year, which is when the
majority of livestock contribution is normally generated.
As a result of these trading conditions, particularly in veal processing,
Allied expects that the 6 months result to 31st December 2020 will be
significantly below the corresponding prior period, with an after tax profit
in a range of $200,000 - $400,000 (assuming a successful NZ Rural Land
Company Initial Public Offering).
Richard Perry
Chairperson
Mr. Perry can be contacted for investor and media enquiries on 06 765 6199.
Attachments:
Corporate Action Notice
Cleansing Notice
End CA:00363652 For:ALF Type:CORPACT Time:2020-11-23 08:30:52
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