HARARE – Seed manufacturer, SeedCo, which earlier had earmarked listing on the Botswana Stock exchanged reported in a circular to shareholders today that it missed its 31 August 2018 deadline as the company awaits approval from Botswana Stock Exchange (BSE) and Zimbabwe Stock Exchange (ZSE).
The company received a nod from shareholders at the last Annual General Meeting to go ahead with the partial unbundling and separate listing of SeedCo international in a bid to raise capital for expansion following a deficient Nostro position in Zimbabwe.
In a circular today SeedCo said “Shareholders are advised that the target separate listing date of 31 August 2018 could not be met and that the listing is now expected during September”
“The listing is awaiting approval by the Botswana Stock Exchange which is expected soon. “
“Immediately following approvals from the BSE for the primary listing and the ZSE for the secondary listing, Pre-Listing statements will be published and distributed in Botswana and Zimbabwe” added the company.
The seed manufacturer is looking forward to unbundle 71 percent of Seed Co International represented by 242 million ordinary shares.
On completion of transaction, Seed Co Limited will retain 26 percent stake in Seed Co International.
Seed Co’s listing on the BSE will increase the group’s visibility and provide a vehicle for offshore fund raising which is a critical component in these foreign currency woes.
According to an earlier circular to shareholders the separate listing of the Seed Co International will be preceded by a capital raise of $19,22 million through a placement of Seed Co International Shares with Vilmorin & Cie SA, a related party, which capital raise is meant to address the short to medium term funding needs of the regional operations.
The seed making company has expansion projects that require immediate funding to the tune of $31 million.
Meanwhile, seed delivery is currently at 35 percent. Mr Nzwere indicated the group was targeting an increase in volumes going forward as they push for market growth, new seed varieties and leveraging on extensive research.
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