Dorchester Pacific says its capital raising has closed over subscribed with NZ$10.3 million raised to help grow its consumer and vehicle lending activities and promote its insurance and savings operations.
Read Dorchester's statement below:
Dorchester Pacific Limited (DPC) advises that it has successfully raised $10.3 million through its entitlement offer. Subscriptions were received from 944 Shareholders and Debenture Holders.
The amount raised included $460,000 from Noteholders who elected to receive Dorchester shares rather than a cash settlement for their Notes. The capital raising, which is part of Dorchester’s Capital Reconstruction Plan, sought to raise between $8-10 million in new capital and closed over-subscribed on 20 August 2010.
The capital raising was underwritten by $7 million by the company’s major shareholders, The Business Bakery and Hugh Green Investments.
Paul Byrnes, Executive Director Dorchester, said “We are extremely pleased at the level of subscriptions we have received with more than 940 subscribers participating in the capital raising entitlement offer. This reflects the ongoing support we have received from investors and shareholders over what has been a difficult two years for the company."
“Looking ahead, we see a number of opportunities in the market. The capital we have raised will provide Dorchester with a strong financial base from which we can grow the business and create good returns for our shareholders.”
The new capital that has been raised will be used to help grow Dorchester’s consumer and motor vehicle lending book and will support an increased marketing investment in the savings and insurance business in order to grow revenue and profits and provide shareholder value.
The new shares will be issued at $0.10 per share. For every new share subscribed to under the capital raising, Dorchester will also issue one Option to subscribe for a new share in 3 years at $0.125 per share. The new shares issued under the capital raising will rank equally in all respects to existing shares.
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