HARARE – Tanganda Tea Company Limited has announced plans to raise US$8 million through a renounceable rights offer, as part of a broader strategy to enhance its capital structure and diversify shareholder offerings.
The rights offer, which will be issued to existing ordinary shareholders in proportion to their shareholding, is subject to regulatory approval and will be used to support the company’s growth initiatives.
In addition to the rights offer, Tanganda Tea Company Limited also plans to pursue a secondary listing on the Victoria Falls Stock Exchange (VFEX), which will see the creation of a new class of shares, known as Class A ordinary shares.
“Further to the cautionary announcement dated 31 December 2024, the Directors of Tanganda Tea Company Limited (“the Company”) wish to advise shareholders and the investing public that the Company is currently finalising the preparation of a Circular to shareholders.
“The Circular will contain details of the following interrelated transactions and will also include a notice to convene an Extraordinary General Meeting (EGM) of members to consider and approve the transactions:
“The proposed creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the Victoria Falls Stock Exchange (VFEX) as a secondary listing; and
“A Renounceable Rights Offer of the listed Class A ordinary shares to the existing ordinary shareholders in proportion to their shareholding in the Company to raise eight million United States Dollars (US$8 million),” the company stated.
According to a statement released by the company, the secondary listing and rights offer are intended to provide investors with greater flexibility and access to the company’s shares, while also supporting the company’s growth objectives.
Tanganda Tea Company Limited has advised its shareholders to exercise caution when dealing in the company’s shares, as the transactions may have a material effect on the company’s share price.
