Frankland River Olive Company has announced plans to restructure into a single vertically integrated olive business, raise $5.9 million and become the sector's newest listed player.
Frankland River Olive Company has announced plans to restructure into a single vertically integrated olive business, raise $5.9 million and become the sector's newest listed player.
The company already has its Western Australian-produced Jingilli-branded products on the shelves of major supermarket groups, competing with other well developed groups such as ASX-listed Piquant Blue Ltd's Red Island brand.
In a statement, the company said the funds will be used for marketing and promotional activity, expansion of processing and packaging facilities, capital works and debt management.
The capital raising will be by way of a rights issue to FROC shareholders and managed investment scheme growers, who will become shareholders - subject to grower and shareholder approval.
The growers represent FROC's own investors from its project launched about five years ago as well as those of Larenta Olives, which it took over in May last year.
Acknowledging that he still had to get this approval from these groups of growers/investors, FROC managing director David Carr said the company was excited about the changes, as they would facilitate a capital raising to complete its funding and make the business more administratively efficient.
"It will also allow senior management to focus principally on the next critical phase of our development - marketing of our olive products internationally," he said.
The completion of the restructure and underwriting is expected be finalised by an ASX listing on July 11.
The offer will be underwritten by stockbroking firm, Patersons Securities Ltd.
The FROC was established in 1999 under a managed investment scheme structure and is now one of the largest olive producers in Australia, managing groves of over 761 hectares at Frankland River and Gingin in Western Australia.
FROC also manages the Preston Vale vineyard, an MIS scheme which it became involved in after its previous manager had collapsed.
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Frankland River Olive Company lodges prospectus to restructure, raise $5.88 million and list on the ASX
Frankland River Olive Company (FROC) is pleased to announce it has today lodged a fully underwritten prospectus with the Australian Securities and Investments Commission, that, subject to Grower and Shareholder approval, will see the Frankland River Olive group restructure into a single vertically integrated olive business, raise $5.88 million and list on the Australian Stock Exchange.
The $5.88 million raised, will be by way of a rights issue to FROC Shareholders and FROC Managed Investment Scheme Growers who will become Shareholders (subject to Grower and Shareholder approval) and is underwritten by leading Australian stockbroking firm, Patersons Securities Ltd.
David Carr, Managing Director, commented "We are very excited about the changes sought as it will facilitate a capital raising to complete our funding and make the business more administratively efficient. It will also allow senior management to focus principally on the next critical phase of our development - marketing of our olive products internationally".
"The funds raised under the Rights Issue will be used to provide for further marketing and promotional activity, expansion of processing and packaging facilities, capital works and debt management."
It is anticipated that completion of the restructure and underwriting will be finalised by an ASX listing on July 11 2006; the Prospectus and relevant Notices of Meeting will be dispatched on Friday 12 May, with Shareholder and Grower meetings scheduled for 7 June 2006.
Note to Editors
The Frankland River Olive Company was established in 1999 under a managed investment scheme structure. FROC, now one of the largest producers in Australia, manages three groves comprising of over 761 hectares of olive trees, based in Frankland River and Gingin, Western Australia. The company harvests, processes and markets extra virgin olive oil and table olives for international and domestic markets. The successful Jingilli extra virgin olive oil brand, developed by FROC, is available in Coles and Woolworths Supermarkets nationally. FROC has also previously sold substantial quantities of bulk extra virgin olive oil to both Italy and Spain.
