Murray River Organics hopes to trade again next month with $30m in the kitty
Food & Agriculture
Embattled health food producer Murray River Organics hopes its shares will start trading again early next month after nearly five months in suspension.
Murray River — an Australian dried fruit producer that operates along the entire supply chain — is undertaking a $30 million raising as part of a turnaround strategy.
Last year the business lost $59.6 million on revenue of $68.5 million.
Murray River (ASX:MRG) told investors last week that major shareholder Thorney Investment Group had committed to take its full entitlement of the new $30 million offer, which is priced at 10c.
The stock last traded in May at 31c — a 75 per cent discount to its $1.30 IPO price in December 2016 which raised $35 million. The business had $3.8 million left in the kitty at the end of June.
A shareholder offer opens today — also priced at 10c — offering 2.4 new shares for each share owned.
All going well, Murray River hopes the shares will again trade fom November 2.
The company has been suspended since the end of May amid a series of headaches followed since first listing in late 2016.
Its 2018 harvest only turned up 3,105 tonnes of dried fruit and fresh table grapes — which was lower than its disastrous 2017 harvest.
In April Murray River told investors the dark days were over, following a saga where its two founders were forced out and the company had to write down profit and inventory, only to return by rolling the board.
They appointed a “turnaround expert”, Valentina Tripp, as new CEO.