The chairman of Frankland River Olive Company looks set to wholly acquire and privatise the business, after Paul Letari increased his shareholding to over 90 per cent.
In a statement today, Frankland River said it had received a letter from Toscana, an entity controlled by Mr Letari, advising that it had increased its shareholding to 91.6 per cent after purchasing $46,375 worth of shares, and will now proceed to compulsorily acquire the remaining shares.
“Toscana will shortly request the Australian Securities and Investments Commission nominate an independent expert to prepare a report on whether the acquisition price determined by Toscana for the remaining shares in the company is a fair value,” Toscana said in the letter.
Frankland produced 548,533 litres of olive oil in its last harvest, in August last year, while reviewing its operations with a focus on reducing costs.
The company incurred a half-year net loss of $320,416, narrowed from a $859,477 loss recorded in the previous corresponding period, with $413,558 in revenue.
The majority of funds for working capital requirements and funding obligations have been by Mr Letari.
Frankland held just over $7 million in assets as of December 31, including 783 hectares of land in Frankland and 1,360ha of land in Mogumber, of which 735ha have been planted with olive trees.
It was the highest price the company’s shares ever traded.
Frankland shares were unchanged at 0.4 cents each at the close.