20/05/2014 - 09:07

TFS completes $67m capital raising

20/05/2014 - 09:07

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Sandalwood producer TFS Corporation has raised $67 million through a share placement, signalling it plans to increase the scale of its plantations.

TFS completes $67m capital raising
TFS chief executive Frank Wilson.

Sandalwood producer TFS Corporation has raised $67 million through a share placement, signalling it plans to increase the scale of its plantations.

TFS will issue about 42 million shares at $1.60 each to Australian and international sophisticated investors.

The issue price represents a 9.9 per cent discount to the company's last closing price and a 4.3 per cent discount to its 30-day volume-weighted average price.

TFS chief executive Frank Wilson said the placement had attracted a range of new high quality institutional investors.

"The capital raising ensures we are well funded to progress a number of value accretive opportunities consistent with our strategy to increase the scale of our owned plantations," he said.

Settlement of the placement is scheduled for next week and does not require the approval of shareholders.

Canaccord Genuity acted as lead manager to the placement.

TFS shares fell in early trade, sitting 12 cents lower at $1.655 at 9:03am WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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