adminAGRO-Industrial concern Zimplow’s $5 million rights issue was undersubscribed, mirroring the depth of the country’s liquidity crunch since adopting the multicurrency regime in 2009.
A notice issued by the company on Tuesday shows that the capital raising initiative had a 40,53 percent subscription level, paving way for the underwriter, Mauritian incorporated firm Sino Properties to snap a significant stake in the company.
Last December, Zimplow announced that it had asked its shareholders to follow their rights in a bid to raise $5 million which would reduce the company’s short term debt. The company said the expensive debt accrued from financing Zimplow’s acquisition of Tractive Power Holdings in 2013. The group is also seeking working capital to finance its agricultural division which has plans to expand its foothold both locally and regionally.
The renounceable rights offer had 77,8 million shares of a nominal value of $0,0004 each at a price of $0,0642 per rights offer share on the basis of one rights offer share for every two ordinary shares held at the record date. The offer closed on February 13. – The Source.
Bongani Moyo
Online Reporter