re: Ann: TFS TO RAISE $37.9 MILLION VIA PLACE...
The whole lot is for sale ... there is no confusion. It is a small industry.
Looks like the CR was largely for debt reduction.
--------------------------------------------------------- TFS to raise $37.9m to pay off debt STUART McKINNON, The West Australian March 9, 2011, 8:39 am Send
Sandalwood grower TFS Corporation will raise $37.9 million via a placement and rights issue to pay off $20 million in bank debt due by the end of April and $10 million of shareholder's loans.
The company said it had placed 34.3 million shares with institutional investors at 80 cents to raise $27.4 million dollars.
Another $10.5 million would be raised via a rights issue for retail shareholders, with 13.1 million shares being offered on a one-for-20 basis, also at 80 cents a share.
The company said all its directors had committed to accepting shares in the rights issue and executive chairman Frank Wilson had taken a significant sub-underwriting position.
Mr Wilson said the capital raising would enable the company to be debt free and place it in a strong financial position.
"The equity raising can be seen in the context of a wider funding package, currently under negotiation, which will assist with our long term requirements," he said.
"As we outlined in our first half results, we believe the outlook for 2011 is extremely positive.
"We have strong cash flows, an excellent institutional investor pipeline and the global price of Indian Sandalwood Oil has hit an all-time high of $2000 per kg."
The placement, which was oversubscribed, was managed by Bell Potter Securities, which is also underwriting the rights issue.
TFS shares were off 9.5 cents, or 10.05 per cent, to 85 cents at 8.35am after emerging from a trading halt.
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TFC Price at posting:
87.8¢ Sentiment: None Disclosure: Not Held
