Wattle Health Australia Limited (ASX: WHA) on 8 May 2019, requested an extension of voluntary suspension to the trading of its ordinary shares quoted on ASX, in line with ASX listing rule 17.2.
Previously, the shares of Wattle Health were placed on a trading halt on 1 May 2019, and they were also under a voluntary suspension on 3 May 2019 pending release of an announcement related to the proposed acquisition of the majority stake in Blend and Pack. On that day, WHA had made a request that the suspension would remain in place till the time the normal trading of shares begins on 8 May 2019 or when the company announces about the proposed acquisition mentioned above.
On 8 May 2019, as per the ASX listing rule 17.2, the company provided its investors with the below information related to its voluntary suspension request:
- The extension of voluntary suspension will help Wattle Health Australia in managing its continuous disclosure obligations, as it expects to make a material announcement related to the proposed transaction to the market. The company would also be providing an update for the funding of the Proposed Transaction, along with negotiations of the revised terms and conditions of the Proposed Transaction.
- The company has requested its securities to remain under voluntary suspension till the earlier of commencement of normal trading on Friday 10 May 2019, or t the announcement related to the proposed transaction is released by the company.
- However, the company expects that it would make an announcement related to the Proposed Transaction before the normal trading day on May 10, 2019.
Blend and Pack acquisition: An overview
Wattle Health Australia Limited and the 100% owned subsidiary company of Mason Holdings Limited together signed a conditional purchase agreement to purchase an additional 46% shares of Australia’s largest independent nutritional dairy manufacturer, Blend and Pack for $46 million along with undistributed earnings (as announced on 11 February 2019). Also, in order to buy the balance of Mason’s shareholding in B&P, the company entered a call and put option with $30.1 million as base purchase amount.
The total asset of the company after the completion of the Proposed Transaction will be around $165 million.
In 1H FY2019 results, the company reported a fall in the revenues from the ordinary activities by 43.2% to $0.363 million, as a result of the discontinuation of the conventional nutritional dairy product range to the first truly Australian organic product offering. The company incurred a loss of 66.8% to $4.348 million.
The balance sheet of the company reported a fall in the net asset base from $61.539 million in 2H FY2018 to $57.362 million in 1H FY2019. The fall in the net asset was the outcome of a fall in the total asset and an increase in the total liabilities of the company. The total shareholders’ equity was $57.362 million. By the end of 1H FY2019, the cash and cash equivalent with the company was $42.139 million.
Since the company got listed on ASX, the shares of the company have generated an excellent return of 290.79%. The shares of Wattle Health last traded on 30 April 2019 at a price of A$0.755.