ASX Announcement
Wellard Limited (Wellard or the Company, ASX:WLD) is pleased to announce a fundraising initiative to raise approximately $52 million (before costs). The fundraising will be comprised of:
- a placement of 25 million new shares to sophisticated and institutional investors at $0.24 per share to raise $6 million (Placement);
- a fully underwritten non-renounceable pro rata entitlement offer on a 1-for-4 basis at an issue price of $0.185 per share to raise approximately $19.7 million (Entitlement Offer); and
- the issue of US$20 million in convertible notes (Convertible Notes) to raise approximately $26.3 million.
The Company has today also lodged with the ASX the offer document for the Entitlement Offer (Offer Document) which shareholders are urged to read in its entirety. The Offer Document includes fulsome details of the fundraising and its effect on the Company, an update of the Company’s outlook and details of the identified risks relating to the Company.
Wellard CEO Mauro Balzarini said the fundraising would replenish working capital and enable the Company to focus on taking advantage of any changes to the commercial trading environment in live cattle exports.
“Following a prolonged period of very difficult trading conditions with reduced margins and cash flow, we needed to bolster the Company’s working capital position to enable the Company to negotiate better trading conditions, and strengthen the balance sheet, as well as improving our overall liquidity.
“Whilst demand from traditional markets has eased due to higher price pressure, Wellard believes volumes can return to historic levels with price reductions in Australia. As we expect an improvement in cattle supply over time, we need to be ready to capitalise on our competitive advantages in the marketplace if and when this eventuates.” he said.
Please click here to view the full Offer Document.