Seeka announces new capital raise

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Seeka has announced a new capital- raising strategy for the next three years. Plans include a $50 million rights issue, a share issuance under a new Grower Share Scheme, as well as a share issuance under the company’s existing Employee Share Ownership Scheme.

The purpose of the capital raise is to strengthen the balance sheet and provide Seeka with the financial flexibility and freedom to pursue its growth strategy, said company officials.

Seeka chairman Fred Hutchings said the company was excited about Seeka’s plans for growth and its pursuit towards being New Zealand’s leading orchard-to-market business.

“Seeka will use the capital raised to strengthen our balance sheet, repay bank debt, undertake planned capital expenditure and give us greater financial flexibility and freedom to deliver better value for our shareholders.”

The first step is a 1 for 1.5 renounceable rights offer, due to close on 7 December. The offer, fully underwritten by First NZ Capital Group aimed to raise $50 million of new equity.

This included a book build to be undertaken at the end of the offer period for any shortfall.

Seeka will also introduce a new Grower Share Scheme and Employee Share Scheme in the first quarter of 2019 to further align the interests of Seeka, its employees and grower suppliers, many of whom are shareholders.

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