Friday 19th March 2021
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Savor Limited today announces the opening of its underwritten renounceable rights issue at an issue price of 17.67 cents per share.
On 10 March 2021, Savor’s wholly owned subsidiary, Amano Group Limited, entered into an agreement to purchase all of the assets of the Amano group restaurants (Amano, Ortolana and The Store) for an aggregate purchase price of $11m.
This acquisition is scheduled to take effect on 8 April 2021, when $7.15m of the purchase price is payable and the issue of $1m of Savor shares to the Vendor (such shares being subject to transfer restrictions), followed by a $2.85m payment 12 months after the acquisition. The acquisition is to be funded through a combination of new debt financing of $7 million and the underwritten rights issue. The rights issue underwriters comprise existing substantial shareholders and new professional financial investors. Consequently Savor is undertaking a capital raising of approximately $6 million for this purpose through a rights issue of 1 New Share for every 4.3077 Existing Shares held to raise up to $6 million. The capital will be applied to part settle the Amano acquisition and also to provide additional funding for the core Savor business, allowing Savor to further pursue its expansion strategy in the hospitality industry. The issue price of 17.67 cents per share is a 5% discount to the last traded price on 9 March 2021, the date prior to announcement of the Amano acquisition, and a 15% discount to the volume weighted average price of Savor shares traded through NZX of 20.82 cents each in the 5 trading days following announcement of the Amano acquisition. No assurance can be given on the future price of Savor shares.
The Board encourages all shareholders to consider participating in the offer. The offer is open until 5pm on 31 March 2021.
Please see the link below for details:
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