TEA producer Tanganda Tea Company Limited has reported that its US$8 million capital raise is progressing well ahead of the company’s extraordinary general meeting of shareholders scheduled for today.
Last month, Tanganda disclosed a US$6,36 million cash deficit and US$7,1 million in bank borrowings, warning that production and debt servicing could be strained without urgent capital support.
The liquidity pressure stems from post-pandemic disruptions, rising input costs, subdued export prices, climate-related production setbacks, power supply challenges, and extended agricultural working-capital cycles. These factors have increased upfront funding needs while delaying export receipts.
The firm proposed the US$8 million capital raise as part of its strategy to quickly restore liquidity.
“The proposed capital raise by way of a renounceable rights offer to raise eight million United States dollars (US$8 million) is progressing well,” Tanganda said in its trading update for its first quarter performance ended December 31, 2025.
Despite these pressures, the company’s first-quarter revenue grew 5% to US$4,65 million from US$4,44 million a year earlier, while its loss before tax narrowed to US$538 497 from US$853 917. Bulk tea production rose 5% to 1 530 tonnes, with exports up 3% to 1 170 tonnes.
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Packed tea sales surged 37% to 453 tonnes, driven by improved packaging availability and higher informal market sales.
The company announced that avocado and macadamia harvesting will begin in the second quarter.
It said the macroeconomic environment remains cautiously positive, supported by strong performance in agriculture, mining, manufacturing and services.
“Inflation is expected to continue moderating under prudent fiscal and monetary policy. Sustained policy discipline and targeted reforms will be essential to maintaining stability,” Tanganda said.
“However, risks remain from climate variability, external shocks, and structural constraints that may affect short-term performance. The company has put in place mitigating strategies to address operational challenges and enhance resilience.”