An $8 million cash grab just got the green light, and Tanganda Tea Company Limited is scrambling to plug a nasty money hole before production and debt payments choke it out.
Liquidity squeeze at Tanganda
Liquidity squeeze at Tanganda
- Tanganda Tea Company Limited revealed a US$6,36 million cash shortfall and US$7,1 million owed to banks.
- Mounting borrowings have been hanging over its balance sheet like a bad cloud.
- Production has taken hits from climate swings and unreliable electricity.
- Export payments have dragged, stretching the group’s working-capital cycle.
- Shareholders at an extraordinary general meeting signed off on the US$8 million renounceable rights offer.
- Under the plan, Tanganda will float 263 821 324 new ordinary shares.
- Existing investors can grab one fresh share for every 0,9896 shares held.
- Each new unit carries a US$0,0303 price tag and US$0,0012 nominal value.
- Article 115 of the Articles of Association underpinned the green light.
- Provisions in the Companies and Other Business Entities Act, Chapter 24, 31 were cited.
- Zimbabwe Stock Exchange Listing Requirements SI 134 19 were also referenced.
- Authorized share capital jumps from 400 million to 700 million shares.
- Rutanhi Beverages Limited stepped in as the underwriter.
- Unclaimed shares will fall to renouncees or the underwriter.
- Settlement will happen strictly in United States dollars.
