Freedom Foods Group Releases Letter to its Ineligible Shareholders

Freedom Foods Group Limited (ASX: FNP) provides a range of high-value added dairy-based protein ingredient solutions to its customers.

Today (i.e. 29th May 2019), the company has released a letter about the Entitlement Offer (announced on 23 May 2019), in which it has explained reasons to the ineligible shareholders as to why they will not be able to subscribe for New Shares under the Entitlement Offer.

Summary Of The Retail Entitlement Offer (Source: Company Reports)

The company believes that it would be unreasonable to make offers to shareholders in all countries in connection with the Retail Entitlement Offer due to legal limitations on making or extending an offer of New Shares in some countries.

In the letter, the company has advised that it will not be extending the Retail Entitlement Offer to the ineligible shareholders and these shareholders will not be able to subscribe for New Shares under the Retail Entitlement Offer.

Shareholders who are eligible to participate in the Retail Entitlement Offer (Eligible Retail Shareholders) are shareholders who:

  • are registered as holders of existing Freedom Foods shares as at the Record Date;

(b) were not invited to participate (other than as nominee in respect of other underlying holdings) in the Institutional Entitlement Offer and were not treated as ineligible institutional investors under the Institutional Offer;

(c) as at the Record Date, have a registered address in New Zealand or Australia;

(d) are not in the US and are not acting for the account or benefit of a person in the US; and

(e) are eligible under all applicable securities laws to receive an offer under the Retail Entitlement Offer without any requirement for a prospectus or offer document to be lodged or registered.

Today, the company has also confirmed that the Retail Offer Booklet and personalised Entitlement and Acceptance Form in connection with the accelerated pro-rata non-renounceable entitlement offer has been dispatched to Eligible Retail Shareholders.

The Offer Price of $4.80 per New Share under the Retail Entitlement Offer is the same price paid by institutional investors under the Institutional Entitlement Offer and the Placement. It is expected that the Retail Entitlement Offer will raise around $10.6 million.

The company has already raised around $54.9 million by completing the Institutional Entitlement Offer. The Retail Entitlement Offer is being made to Eligible Retail Shareholders on the basis of 1 New Share for every existing 18 Freedom Foods shares held as at the Record Date.

In the last six months, the share price of the company increased by 12.24% as on 28th May 2019.  At market close on 29th May 2019, the stock of the company was trading at a price of $5.410, down 1.636% during the day’s trade with a market capitalisation of ~$1.35 billion. Its 52 weeks high price stands at $7.000 and 52 weeks low price at $4.150, with an average volume of 297,378.


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