Higher production costs have hit Frankland River Olive Company Ltd which is looking to offload its Parmelia Olive Grove property.
Higher production costs have hit Bibra Lake-based Frankland River Olive Company Ltd which is looking to offload its Parmelia Olive Grove property.
The company today announced it was seeking expressions of interest for the potential purchase of the property, with funds raised from the sale to contribute to marketing activities including the sale and distribution of its extra virgin olive oil product, Jingilli.
Below is the full announcement:
As part of the Company's ongoing strategy to increase shareholder value the Company is considering the sale of its Parmelia Olive Grove and to this end has sought expressions of interest for the potential purchase of this property. If the Company was successful in realizing a price for the sale of this property, that Board considered fair, the Company would continue to own and operate its Frankland olive grove.
The sale of Parmelia would facilitate an increase in the Company's resources and focus on its marketing activities including the sale and distribution of its successful branded product Jingilli as well as the marketing and trading of Australian bulk Extra Virgin Olive Oil "EVOO", within Australia and internationally. As production of EVOO has increased in Australia over the past few years it is now not necessary for the Company to have ownership of all of its grove assets.
The Company now exports to seven countries, and has since the start of the year considerably increased its ranging and distribution of Jingilli throughout Australia. It has also commenced the sale of bulk EVOO of behalf of other Australian producers.
The company will continue to keep the market informed in regards to the potential sale of its Parmelia olive grove and other Company activities.