Online Reporter
Online Reporter
OK Zimbabwe has announced plans to raise up to US$30 million to address low stock levels in its retail outlets and mounting debts to suppliers and banks.
The funding will be raised through a combination of a rights issue, private placement and debt instruments.
In a cautionary statement, group company secretary, Mrs Margaret Munyuru said the retail giant has cited exchange rate disparities and inflationary pressures among the challenges constraining its business viability.
Mrs Munyuru said these challenges have led to supply chain disruptions and reduced stock availability, thereby directly impacting business performance.
“The company has been unable to maintain adequate stock levels as many suppliers can no longer continue providing goods and services due to outstanding unpaid balances,” she said.
“This has directly impacted product availability across the company’s stores, affecting revenue generation and overall business performance, particularly in the last six months where trading levels were inadequate to cover costs.”
She said OK Zimbabwe anticipates a significant loss for the financial year ending March 31, 2025, hence the capital raise initiative to stabilise the financial position.
“In light of the foregoing, the board of directors has resolved to undertake a capital raise in the sum of up to US$30 million to bridge the funding gap and stabilise the company’s financial position.
“The capital raise will be a combination of a rights issue, private placement and debt instruments.”
