Capilano Honey Limited (ASX:CZZ)
has inked a deal to buy the assets of Victorian honey packer Yellow Pty Ltd, trading as Chandlers Honey.
Capilano will purchase the asset through issuing almost 77,000 of its shares valued at almost $580,000 at today’s trading price.
The acquisition is expected to increase Capilano’s packing volumes by 1,000 tonnes and expand the company’s operational capacity to meet a larger sales demand.
While the deal remains subject to conditions Capilano expects the contract to become unconditional tomorrow upon which time the transaction would be complete.
Capilano Honey boosted its net profit by 34 per cent to $4.61 million in the 2014 financial year.