Comvita completes capital raising

Comvita Limited (NZX:CVT.NZ - News) today announces the successful completion of its 1 for 5 pro-rata Renounceable Rights Offer. The Shortfall Bookbuild, of new shares attributable to the rights of shareholders who did not participate, was conducted on 16 December and priced at $3.80 per share. This provided a premium of 25 cents per share accruing to certain shareholders who could not or who did not take up their entitlement under the Offer. The bookbuild was strongly bid by a number of existing and new shareholders which resulted in heavy pro-rated scaling for all bidders at $3.80 per share.

Comvita Chairman Neil Craig said, "The completion in full of the rights offer and Shortfall Bookbuild will result in receipt of funds totalling $24.356 million and will enable Comvita to repay bank debt incurred to complete recent acquisitions and infrastructural projects as well as providing the Company with the balance sheet flexibility to pursue further acquisitions that fit within Comvita’s investment criteria."

"The rights offer (at $3.55 per new share) received strong shareholder support with 5.573 million new shares taken up by existing and new shareholders during the rights offer. The shortfall of 1.288 million shares offered in the bookbuild was from a combination of shares not subscribed for by existing eligible holders and rights that accrued to ineligible shareholders domiciled outside New Zealand or ineligible shareholders who are participants in the partly paid executive share scheme."

"This shows Comvita’s business strategy and growth prospects are well understood by the market. The Board wishes to thank all shareholders for their continued support of the Company."

The new shares subscribed for under the rights offer and the Shortfall Bookbuild are expected to be allotted and to commence trading on the NZX Main Board on 19 December 2014.

The premium achieved on the Shortfall Bookbuild will be paid pro-rata to the holders of unexercised rights (less transaction costs), with dispatch of payments expected to occur on 22 December 2014.

Deutsche Craigs, as lead manager, managed the Shortfall Bookbuild for Comvita.