Xanadu Normans Wines Group directors have been inconsistent in their backing of the company’s recent $7 million rights issue.
A one for two rights issue at nine cents a share was initiated on June 16 to raise money in order to pay out growers of its crippling managed investment scheme, however, not all directors took up the offer.
Xanadu director and general manager Conor Lagan declined the offer with his shareholding remaining unchanged at 9.7 million shares.
Non-executive director Ken Richards increased his shareholding by just 277,780 shares, approximately 3.6 million shares short of his entitlement.
The slight increase takes Mr Richards’ shareholding to 8.1 million shares.
Making up part of the shortfall is Xanadu managing director Sam Atkins and Xanadu director Ross Norgard.
Both directors acquired more than they were required to via the recent rights issue.
Mr Norgard increased his shareholding from 23.8 million shares to 38.2 million, a total increase of 14.4 million shares.
Mr Norgard acquired 11.7 million shares via the rights issue and underwrote a further 2.5 million shares.
His total investment was approximately $1.5 million.
He also acquired 100,000 shares in an on-market trade.
Mr Atkins underwrote 462,467 in shortfall shares and took out 648,684 in the rights issue, equating to a $140,000 investment in Xanadu.
He said he bought more shares than required under the rights issue because he believed the future was bright for Xanadu and not because other directors had failed to take up their full entitlements.
“I took up more than my rights entitlements because I believe in all the restructuring work we have done,” Mr Atkins said.
“I think that all of that restructuring and getting out of the MIS will pay dividends in the coming 24 months.”
Mr Atkins said he wanted to increase Xanadu’s share price to at least 17 cents in the next 12 months.
“That’s what our net tangible assets are worth and we are working towards that in the next six to 12 months,” he said.
“That figure doesn’t include our brand values.”
At time of printing Xanadu’s share price was eight cents.
