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Message: [QUOTE="Queen, post: 87192, member: 27"] 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 [LIST] [*]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. [/LIST] Rights offer mechanics [LIST] [*]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. [/LIST] Legal and structural approvals [LIST] [*]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. [/LIST] Underwriting and currency terms [LIST] [*]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. [/LIST] [/QUOTE]

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