Moa plans $5.3m capital raising
Listed brewer Moa plans to raise $5.25 million in new capital via a pro-rata renounceable rights issue.
In addition the boutique beer maker this morning raised $500,000 from five unidentified institutional or professional investors at 38 cents a share. Moa's shares closed yesterday at 50c a share. Settlement for the placement would be on July 29.
Moa chief executive Geoff Ross said the rights issue was priced at 33 cents per share on a one-for-two basis.
The stock rose 10 per cent to 55c after the announcement, valuing the company at $16.7m. Moa listed in late 2012.
Moa's share have rallied 34 per cent since Monday, when the company reported a 95 per cent increase in sales for the June quarter compared to a year earlier.
Moa took its distribution and sales structure in-house in October last year after falling 30 per cent short of prospectus sales volume targets.
This led to a $5.8m loss, causing the share price to slump from a float price of $1.25 per share to as low as 41c.
Moa said it had received commitments for 68 per cent of the $5.25m sought including from major investors Pioneer Capital, The Business Bakery and Allan Scott Wineries.
Subscriptions for the shares must be lodged by August 21 and the new shares will be allotted on August 27. The rights can be traded between Thursday next week and August 15.
Shareholders who do not wish to take up the rights can sell them, but will have their existing shareholding diluted.
Moa has doubled its market share since taking distribution and sales in-house and, with 7.2 per cent of the market, is now the fourth most-sold beer in New Zealand after Monteith's, Macs and Boundary Road, according to AC Nielsen research.
Revenue for the year to March 30 was up 87 per cent to $4.59m in the year to March 30.
Moa non-executive chairman Grant Baker said at Moa's annual meeting today that for the last financial year, volume sold in Australia was up 54 per cent on the previous year, with New Zealand up 18 per cent.
"We see this as a very pleasing result given that the changes occurred midway through the year and caused a great deal of upheaval and disruption while they were happening."
Sales in other export markets were also significantly up on the previous year.
"I know that the company's performance to date is not what you signed up for, so thanks for staying with us. We intend to reward your support with much better results in the future."
Ross said Moa was established as an export company.
"Whilst New Zealand, being our own backyard is our priority market for now, we see export markets such as Australia and the US as key next steps."
In the last six months Moa had established partnerships with large Australian alcohol retailers Dan Murphy's and Beer Wine and Spirits, he said.
Moa had also improved its margins from 14 per cent in the first half of the 2014 financial year to more than 20 per cent on a monthly basis.
Margins would be substantially higher heading into 2015, he said.