Murray River Organics shores up support for $30m raising, ready to launch News04 Oct 2018

Embattled sultana farmer Murray River Organics has finally secured a lifeline. Four months after its shares were suspended from trading, Murray River Organics has lined up a $30 million equity injection via Shaw and Partners Financial Services. 

 

The $30 million raising is to be structured  as a renounceable rights issue at 10¢ a share. It is understood Shaws has lined up fund managers to sub-underwrite the offer and those funds were notified of their commitment late on Wednesday. Murray River Organics' next call was expected to be to its funder, National Australia Bank. 

 

Funds raised are to recapitalise the company and to help with vineyard development.The offer is expected to be structured as about a five-for-two entitlement offer. The 10¢ a share raising is also at a steep discount to where the stock last traded; 31¢ a share at the end of May.

 

Of course there has been plenty of news to digest in the months since. There have been announcements on talks with its bankers, strategic reviews, potential asset sales, executives and directors coming and going, and the like. There was also plenty of talk about its ability to operate as a going concern in its financial statements. 

 

Investors no doubt hope the rights issue signals a clean slate. Those that take up their rights will be taking a leap of faith - but the fact the deal is underwritten is probably the best news to come out of Murray River Organics all year. 

 

Article sourced via: https://www.afr.com/street-talk/murray-river-organics-shores-up-support-for-30m-raising-ready-to-launch-20181003-h165xk

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