Peanut Co wants investors to shell out Peanut Company of...

Peanut Co wants investors to shell out

Peanut Company of Australia has appointed RBS Morgans to help it raise $15 million, but even more interestingly seems to be searching for a "strategic investor".

PCA chairman Ian Langdon wrote to shareholders earlier this month telling them that while he would prefer that all shareholders get an opportunity to tip into the capital raising, that would depend on the formal "Expressions of Interest" process it is running via RBS Morgans.

The Queensland group closed off its books for the financial year at the end of March, but is yet to fill in shareholders on how it performed. It lost $544,000 in the first half, mostly due to its ill-fated expansion into Katherine in the Northern Territory which cost it in both trading terms and the debt burden.

Since then it has sold the properties, to the sandalwood producer TFS Corporation chaired by former Senator Richard Alston, and applied most of the money to reducing debt — but is clearly still feeling pain.

Insider also wonder whether the search for a significant financier has any connection with the arrival on its share register of an as yet unrevealed investor, via Queen Street Nominees, with a shade under 20 per cent of the equity.

The buyer, a client of colourful Brisbane investment banker Jenny Hutson, spent $2.5 million on buying significant stakes in both PCA and Capilano Honey, which Hutson said was part of a desire to invest in Australian food producers. Capilano shares are expected to list on the ASX either next month as or in July as it vacates the closing Bendigo Stock Exchange.


Read more: http://www.smh.com.au/business/asic-hunts-webscam-spinners-20120521-1yzk1.html#ixzz1vRwBlwBw