New Zealand-based orchard lease and management company Seeka aims to receive around $50 million commitment from its shareholders.
Seeka is offering existing investors the chance to buy one new share for each 1.5 shares at $4.25. The offer, which is fully underwritten by First NZ Capital, is being paid 2.75 percent of the offer proceeds.
The company will use the capital raised to strengthen its balance sheet, repay bank debt, undertake planned capital expenditure and give it greater financial flexibility and freedom to deliver better value for its shareholders.
The fundraising plan comes at Seeka intends to boost its expansion plans of about $32 million of capital expenditure during the 2019 financial year, including upgrades of its processing plants at Te Puke and Kerikeri.