Murray River Organics in $25m rescue raising at 1.5 cents per share

From the AFR - https://www.copyright link/street-talk/murray-river-organics-launches-raising-shaws-canaccord-on-ticket-20200206-p53yb3:

Organic food producer Murray River Organics has lodged a prospectus for a fully underwritten rights issue to raise $25 million to resize its existing debt facility and fund its turnaround strategy.
The renounceable entitlement offer was priced at 1.5¢ a share, which represented about a 30 per cent discount to the theoretical ex-rights price. Shaw and Partners and Canaccord Genuity oversaw and fully underwrote the deal.Eligible shareholders were entitled to apply for 3.8 new shares for every 1 fully paid ordinary share held.The fresh equity would be used by the embattled Murray River to fund its turnaround strategy, after it struggled in 2019 fighting drought, low farm yields, high water costs and high growing costs.The $22 million organic food producer focuses on manufacturing and distributing dried vine products like raisins and currants and operates the entire supply chain from growing product to supplying customers.
The challenges in 2019 forced the company to voluntarily suspend itself from trading on the ASX late last year.Murray River went into a trading halt in November, announcing that it was entering into discussions with its financier and landlord of the Colignan property to assess its capital management initiatives.Then four days later the company requested a voluntary suspension from trading and has not resumed.Since then, the company has exited the Colignan Farm lease, is selling its non-core farm assets and has restructured its debt facility.The debt facility limit would be permanently reduced to $40 million from $54 million, incrementally before June 30, 2021.The company is expected to resume trading in early March, upon completion of the entitlement offer.