AgriNurture gains ‘fresh capital’ for expansion

The additional funds AgriNurture Inc. got from additional subscriptions to its shares of stock will fund its expansion, the publicly listed company said Thursday. AgriNurture told the Philippine Stock Exchange in a statement its board approved the equity subscription of seven new investors involving 25 million shares valued at P250 million, of which P77.5 million had been paid "The fresh capital shall be used as part of the company's working capital that would augment the funding requirements of its growing operations as well as fund strategic corporate acquisitions of the company," AgriNurture said. The shares were issued at a 16-percent premium over the average closing price for the last five trading days before the subscription agreements were executed on Oct. 3, the company said. The additional subscription raised the public float of AgriNurture from 51.87 percent to P56.3 percent. AgriNurture said earlier this week it has "received and accepted" the offer of US-based Black River Capital Partners Fund (Food) LP, a fund managed by Black River Asset Management LLC, to buy a 28.11-percent stake in the company for $30.45 million. A due diligence will be undertaken for the transaction. "The parties are given 60 days from 30 September 2011 within which to formalize the structure for Black River's investment and execute the formal and binding agreement/s," AgriNurture said. In August, AgriNurture said it acquired the controlling stake in The Big Chill Inc., which sells various beverages and food products under four brands. The company said it will pay P20 million for 1,020 shares equivalent to 51 percent equity stake in The Big Chill — which sells the brands "Big Chill," "Fresh Bar," "C'Verde," and "Canefusion" and operates 40 branches nationwide. — CMA/VS, GMA News