Ariston Holdings shareholders have approved the conversion of debt to equity of $4 million at an extra-ordinary general meeting held on Wednesday.
BY VICTORIA MTOMBA
The shareholders approved the transaction in which $4 million of the company’s debt, as at September 30, 2015, was converted to equity at a conversion price of $0,018 into 222,2 million ordinary shares of a nominal share price of $0,0001 each, which are issued to Origin.
The transaction will see interest of $1,53 million owed to Origin and Afrifresh being waived.
Speaking on the sidelines of the extraordinary general meeting on Wednesday, the company’s chief executive officer, Paul Spear, said the conversion would help reduce loans from the company’s balance sheet.
“We are trying to get our debt to have a longer tenure. Now our debt is at $10,5 million from $19,5 million although it’s still high,” he said.
Spear said the company was in a joint venture with Penhalonga Energy to produce 300 kilowatts of power for Claremont, one of its agricultural produce units to address power issues.
“We are in a joint venture with an engineering firm, Penhalonga Energy and its micro energy we will get 300 kilowatts that will be enough for Claremont,” he said.
- 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
Spear said tea production was at 65%, which was due to the dry weather conditions, although he said tea sales were good, while macadamia production was lower than last year, although demand for the fruit is still high.
Spear said the company was working towards the construction of a post-harvesting facility that would make it easier to grade and dry macadamia nuts. The facility will cost $340 000.
“It’s difficult to predict how the macadamia fruit will perform, as they are at the flowering stage at the moment,” he said.
Spear said the start of the agriculture season was characterised by low rainfall and that resulted in the apple crop total yield being lower than expected and the apples were smaller than the previous year.
