AgriNurture to raise P500M thru stock rights offer

AgriNurture Inc., the only fruits and vegetable grower listed on the Philippine Stock Exchange, is raising about P500 million in a stock rights offering. In a text message to reporters Thursday, AgriNiture president Antonio Tiu said that the company will be generating close to P500 million through the offer at a 1:1 ratio and at P2.50 per share. "Stockholders who would avail [themselves] of the company's stock rights offering shall also be entitled to free warrants at a ratio of 1 warrant for every 2 shares actually acquired from the stock rights offering," AgriNurture told the exchange in a disclosure. "The warrants are of European call option, exercisable after 3 years, at a strike price of P10.00 per share," the company said. Respective AgriNurture directors, officers, and stockholders who own more than 10 percent of the company’s outstanding capital stock are covered by a 360-day lock up clause that prevents them from selling shares obtained through the rights offer for about a year starting from the date stamped on the stock certificates, according to the disclosure. The stock rights offer would have to be ratified by stockholders during the company's annual shareholders meeting Thursday. Apart from the stock rights offer, AgriNurture also plans to hold an initial public offering this quarter that could generate another P1.5 billion in capital. The initial offering covers 25 to 30 percent of AgriNurture’s authorized capital stock, and the money will be allotted to its capital requirements in the next three years. Part of the proceeds from the public offering will be used to build a cold storage facility for longer shelf life of its farm products. Part of the money will also be spent on expanding its farm and wet market operations. —JE/VS, GMANews.TV