- Cobram Estate Olives (CBO) completes its share purchase plan (SPP) to raise $2 million for its core growth initiatives in Australia and the USA
- The SPP was offered with an issue price of $2, representing a 1.5 per cent discount to the share price on December 3
- The company received 254 valid applications for a total of $3.3 million with an average application value of about $13,000
- After a scale back, all eligible applicants will receive approximately 60 per cent of the shares they applied for
- Shares were trading down 0.25 per cent, trading at $1.99 each
Cobram Estate Olives (CBO) has completed its share purchase plan (SPP) to raise $2 million.
The company previously completed a placement to raise $50 million.
The funds will be used for the company’s core growth strategies in Australia and the USA.
This includes a material expansion of olive milling capability at the company’s Boort grove in Victora, which will triple the facility’s processing capacity and allow the company to meet the growing demand for its Australian extra virgin olive oils.
The money will also be utilised for the acquisition of 438 acres of freehold land in California and the development of groves on this land, as well as funding a pipeline of near-term acquisition opportunities.
The SPP was offered at the same terms as the placement with an issue price of $2, representing a 1.5 per cent discount to the share price on December 3.
The company originally aimed to raise $1 million, but due to strong demand, it increased the amount raised to $2 million.
CBO received 254 valid applications for a total of $3.3 million, with an average application value of about $13,000.
A scaling back of valid applications was applied pro rata to the value of each SPP application. All eligible applicants will receive approximately 60 per cent of the shares they applied for, which is similar to the scale back applied to the placement.
Chair and Co-founder Rob McGavin said he was pleased to offer shareholder an opportunity to participate in the offer.
“We received stronger than anticipated demand from our loyal shareholders in the SPP offer, allowing us to increase the size of the offer to $2 million,” he said.
“We thank the participating shareholders for their continued support and look forward to
using these funds to accelerate our growth initiatives in Australia and the USA.”
The new shares will be equal in value to existing shares and will begin trading on the ASX on Thursday.
Shares were trading down 0.25 per cent, trading at $1.99 each at 3.02 pm AEDT.