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Camellia Aebischer


Seeka raises capital to fund expansion

Through a new capital raising strategy Seeka plans to gather NZ$50m (US$33m) to pay debts and fund growth

Seeka raises capital to fund expansion

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Over the next three years, New Zealand kiwifruit company Seeka will roll out a new Grower Share Scheme, a rights issue, and an issuance of shares under the company’s existing employee share ownership scheme.

Seeka says the purpose of this strategy is to strengthen its balance sheet and provide financial flexibility and freedom to pursue its growth strategy.

“We are excited about Seeka’s plans for growth and our continual pursuit towards being New Zealand’s leading orchard-to-market business,” said Seeka chairman Fred Hutchings.

“Seeka will use the capital raised to strengthen our balance sheet, repay bank debt, undertake planned capital expenditure and give us greater financial flexibility and freedom to deliver better value for our shareholders.”

On 21 November a fully underwritten pro rata renounceable rights offer will commence, closing on 7 December this year.

This rights offer will allow existing investors to buy one new share for every 1.5 held at NZ$4.25 (US$2.85) – 25 per cent less than the price shares closed at on Friday 9 November.

Following this in the first quarter of 2019 the company will introduce a new Grower Share Scheme (GSS) and Employee Share Scheme (ESS).

Proposed terms for the GSS include a three-year period where shares are held on behalf of the grower by Seeka, funded by interest-free limited recourse loans, then transferred to the grower after the term dependent on a handful of conditions.

Proposed terms for the ESS includes an expected maximum of 700,000 shares in aggregate.

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