INTERFRESH Limited is seeking shareholder approval to raise $3 million to retire short-term debt and finance working capital requirements at an extraordinary general meeting (EGM) scheduled for later this month.
Victoria Mtomba
The EGM is set for July 22.
In a circular to shareholders yesterday, the company said since 2009, it had not been recapitalised, but relied on debt financing to sustain its operations and as a result, the company and its subsidiaries did not have adequate working capital.
Interfresh in 2011 secured $5 million to fund both capital expenditure and working capital. The proposed rights issue would help the company to restructure its balance sheet by reducing debt, increase the company’s borrowing capacity, improve trading capacity and improve export earnings.
“In order to rationalise the authorised and issued shares in the capital of Interfresh and provide headroom for issuing new ordinary shares by increasing the authorised share capital, the company seeks shareholder approval to consolidate the authorised and issued ordinary shares by a factor of 10 in which 10 ordinary shares will consolidate into one ordinary share in the capital of the company,” company chairperson Chipo Mtasa said in a circular.
Mtasa said the share consolidation would create headroom for issuing new ordinary shares in the capital of the company. She said the loss of 1 600 hectares of land by Mazoe Citrus Estates to the Ministry of Land had affected the company.
“The allocation of part of MCE by government has caused an event of default which makes the loan and all accrued interest immediately payable,” Mtasa added.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
In 2012, Interfresh accessed a short term bridging loan facility from IceJay Investments of $1,25 million for working capital.
