Veritas to offer up to $25M of shares in April, has $10M facility with ANZ

Friday 1st March 2013

Veritas Investments, the shell company that's acquiring the Mad Butcher franchisor business, aims to raise up to $25 million in the public share offer next month and has secured a $10 million loan facility from ANZ New Zealand.

The capital raising will fund the $20 million cash component of its $40 million purchase, with the balance to be met with an issue of ordinary Veritas shares.

Craigs Investment Partners is underwriting $12.7 million of the share sale though it has subsequently gained sub-underwriting agreements with Collins Asset Management, a company associated with director Tim Cook, for $2.5 million, and from RMI Holdings, associated with director Phil Newland, for $2 million.

The company has received firm commitments for $10.2 million of shares, it said.

Veritas shares last traded at $2 on the NZX, valuing the company at $4.58 million.

The capital raising details were included in Veritas's results for the six months ended Dec. 31. Operating revenue was $22,400 compared with $358,016 a year earlier. The first-half net loss narrowed to $561,154 from $1.6 million a year earlier, when it recognised a $1.3 million loss on the sale of investments.

Veritas was created from the shell left by the winding up of Salvus Strategic Investments, which sold assets and returned capital to shareholders.

BusinessDesk.co.nz

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