Freedom Foods Group (ASX:FNP) secures $265m rescue package

Company News

by Michael Luu

Healthy eating company Freedom Foods Group (ASX:FNP) has successfully secured a $265 million rescue package through an equity raising to stage the company’s financial comeback. The capital raise consisted of an oversubscribed institutional issuance and a private offer to Freedom Foods’ major shareholder Arrovest.

Under the wholesale placement, the battered company issued unlisted convertible notes at $1 per security with a maturity due of May 2027, to wholesale investors. These notes can only be transferred via private transactions. International and domestic funds’ interest in the $130 million wholesale offer exceeded the company’s expectations by $8.9 million.

Perich family’s investment group has agreed to downgrade its minimum intake under the private placement from $135 million to $126.1 to make way for over-subcriptions by Freedom Foods Group’s new and existing investors.

Freedom Foods Group responded to the successful raise, “We’re delighted with the level of support shown by existing and new investors for the company, which we view as a strong endorsement of the turnaround strategy now well underway”.

The cereals and snacks maker’s recapitalisation project is intended to improve the company’s debt position and reinforce the $119 million company’s turnaround strategy to “return the company to long-term sustainable and profitable growth for the benefit of all shareholders and investors.”

Shares in Freedom Foods Group are trading 3.49 per cent higher at $0.44

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