adminIn a statement, the company said the proposed recapitalisation would raise funds to retire its short-term debts and finance working capital requirements.
A total of 150 000 000 new ordinary shares with a value of US$0,01 will be offered to shareholders at a subscription price of US$0,02 at the company’s EGM to be held later this month.
The group said the approval of the rights issue would restructure the balance sheet by reducing the debt and provide scope for acquiring long-term funding to counter the effects of losing 1 600 hectares of land at the Mazoe Citrus Estates earlier this year.
Government acquired the land in terms of Section 5(1) of the Land Acquisition Act (Chapter 20:10).
“The consequent loss of revenue and assets impairment has left the balance sheet in need of restructuring through an increase in equity funding,” the company said.
Interfresh said the approval of the rights offer would not change the shareholding structure of the company.
The company’s revenue for the year ended December 31 2012 went down 23 percent to US$5, 4 million from US$7,1 million in the previous year.
The company said this figure was primarily comprised of revenue from its agricultural operations.
This contributed to the 388, 6 percent decline in the total comprehensive loss for the period from US$1, 5 million in 2011 to US$7 656 236 in the period under review.
The company’s total assets went down 39,12 percent from the 2011 figure of US$25 489 352 to US$15 516 768 in the comparable period.
Online Reporter