Thorney bags 32pc of struggling grape grower Murray River as share price plunges
A major shareholder in struggling grape grower Murray River Group has lifted its stake in the company to 32 per cent, after backing a desperately needed capital raising.
Tech investor Thorney Investment Group (ASX:TOP) has been a strong backer of Murray River (ASX:MRG), rallying around a previous board in February when the founders of the company were in the process of removing it.
The fruit trader came out of suspension on Thursday after going into the halt in May in order to stem an ongoing tide of problems, from property valuations to serious allegations about “poor practices” in fruit weighing.
On Friday, Murray River’s shares plummeted almost 70 per cent to 9.8c.
The shares last traded, in May, at 31c and the capital raising was priced at 10c.
Murray River was trying to raise $30.4m but even at that steep discount retail shareholders were only game to put in about half — $15.5m.
As underwriter, Thorney mopped up the remaining 151m shares.
Thorney is still supporting the company as founders Erling Sorenson and Jamie Nemtsas tried again last month to take control of the company.
This time however Mr Sorenson and Mr Nemtsas cancelled their play to remove the board on Monday.