CVT
12/11/2014 09:36
RIGHT
REL: 0936 HRS Comvita Limited
RIGHT: CVT: Comvita Announce Rights Issue
Together with its first half result, Comvita has today announced a pro rata 1
for 5 renounceable rights offer and a shortfall bookbuild offer to raise up
to $24.4m.
The rights offer is an offer to "Eligible Shareholders". Under the rights
offer, Eligible Shareholders are entitled to subscribe for 1 new share for
every 5 existing shares held on the Record Date, provided that entitlements
will be scaled up to a minimum holding of 50 rights.
The Record Date for determining entitlements is 5:00pm, 21 November 2014,
with the opening date for the rights offer being 25 November 2014. The
rights will trade under code CVTRB on the NZX Main Board from 19 November
with last date of rights trading being 8 December 2014. The Closing Date for
the rights offer is 5:00pm 12 December 2014, with allotment and issue of new
shares on 19 December 2014.
These new shares will not qualify for the dividend to be paid on 5 December
2014.
Eligibility
The rights offer is only open to Eligible Shareholders, i.e., persons who
have registered addresses in New Zealand, who are registered as Shareholders
at the Record Date, or persons that Comvita is satisfied can participate in
the Offer, in compliance with all applicable laws.
Comvita considers that the legal requirements of other jurisdictions in which
Shareholders have a registered address (being Australia, Hong Kong, South
Korea, Japan and the United States of America) are such that it would be
unduly onerous for the company to make the Offer in those jurisdictions.
The entitlements of all ineligible Shareholders will be issued to a nominee
who will endeavour to sell those entitlements and the net proceeds less costs
(calculated as 0.25% of the price at which the rights are sold) will be paid
to those shareholders.
Shortfall Bookbuild
Any new shares attributable to rights not taken up by the Closing Date
(5:00pm, 12 December 2014) including those of persons who are not Eligible
Shareholders ("Unexercised Rights") will be offered to "Eligible Bookbuild
Investors" via a Bookbuild process.
The Shortfall Bookbuild will be completed by 16 December 2014. Eligible
Bookbuild Investors participating in the Shortfall Bookbuild, will be able to
bid for new shares that are attributable to Unexercised Rights. If the
proceeds from the issue of new shares under the Shortfall Bookbuild on a per
Share basis (Bookbuild Price) exceeds the Issue Price, such excess less
transaction costs (calculated as 0.25% of the Bookbuild Price) will be paid
to the holders of the Unexercised Rights in proportion to their holdings of
Unexercised Rights.
Offer Document
Details of the Offer are contained in an Offer Document dated 12 November
2014, a copy of which can be downloaded from NZX Limited's website
www.nzx.com under stock code CVT.
Application has been made to NZX for permission to quote the rights on the
NZX Main Board, and all the requirements of the NZX relating thereto that can
be complied with on or before the date of the Offer will be duly complied
with. However, NZX accepts no responsibility for any statement in this
announcement or the Offer Document to which it relates. NZX is a registered
exchange which operates the NZX Main Board, a registered market, regulated
under the Securities Markets Act 1988.
Capital Raising
Comvita Chairman, Neil Craig said, "Our continued growth, and our acquisition
and infrastructure investments over the past five years have largely been
funded from operating cash flows, long and short term borrowing and the
strategic investment made by Derma Sciences of NZD$8.9m made in September
2013. As we grow, we also require increased working capital during the New
Zealand spring due to the seasonal nature of the honey harvest. This is
because we must invest in inventory and beekeeping processes prior to our
large northern hemisphere selling period for a significant proportion of our
product range."
"This capital raising will help address these issues, by allowing for a
reduction in bank debt, and then ultimately providing further equity to
support the businesses investment in honey inventory as well as affording
financial capacity to consider acquisitions."
# Ends #
For further information:
Brett Hewlett, Comvita CEO, 021 740 160
Neil Craig, Comvita Chairman, 021 731 509
Julie Chadwick, Comvita Communications Manager, 021 510 693
Background information
About Comvita (www.comvita.com)
Comvita (NZX:CVT) is a global natural health company committed to the
development of innovative products, backed by ongoing investment in
scientific research. We are the world leaders in Manuka (leptospermum) honey
and fresh-picked Olive Leaf Extract, which are at the core of the Comvita
product range.
We have approximately 50% of honey supply under direct ownership or control,
with the balance of supply from long term contractual and partnership
arrangements. Comvita pioneered the development and use of medical grade
Manuka honey and was the first to receive FDA approval (2007). We partner
with US wound care company Derma Sciences, Inc. (NASDAQ:DSCI), the global
licensee for Medihoney specialist wound care products, which are used in
hospitals and medical centres around the world. Comvita's freshly picked
Olive Leaf Extract is grown, harvested, extracted and bottled at the world's
largest specialised olive leaf grove, with over one million olive trees.
Comvita sells into more than 18 countries through a network of our own
branded retail locations, online (nine country specific e-commerce websites)
and third-party outlets. We have over 450 staff located in New Zealand,
Australia, Hong Kong, Japan, Taiwan, South Korea, United Kingdom and USA.
Download the Comvita Investor App
End CA:00257540 For:CVT Type:RIGHT Time:2014-11-12 09:36:59
