Key facts about Select Harvests' proposed capital raising

Select Harvests Limited (ASX:SHV) has prepared and authorised a fully underwritten capital raising, aiming to raise approximately $80.0m. The capital raising includes a 1 for 9.2 pro rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares in Select Harvests to eligible shareholders, as well as an institutional placement of new shares to certain institutional and sophisticated investors. The company's proposed capital raising is subject to the Corporations Act 2001 (Cth) and is being managed by Bell Potter Securities Limited and Barrenjoey Markets Pty Limited as joint lead managers.

Executive commentary on the capital raising

The capital raising is a strategic move to strengthen our balance sheet and provide flexibility to execute our growth strategy. The proceeds will primarily be used to reduce net debt and reset the balance sheet, allowing us to invest in near-term growth opportunities to improve productive capacity and fund working capital investment for the 2025 crop. This will provide us with the necessary flexibility to execute our long-term growth strategy and deliver sustainable returns to our shareholders.

Summary of the capital raising and outlook

Select Harvests (ASX:SHV) has announced a fully underwritten capital raising to raise approximately $80.0m, comprising a pro rata accelerated non-renounceable entitlement offer and an institutional placement. The company aims to utilize the proceeds to reduce net debt, reset the balance sheet, and invest in near-term growth opportunities to improve productive capacity and fund working capital investment for the 2025 crop. This move is aligned with the company's vision to be a leader in the supply of 'better for you' and 'better for the planet', plant-based foods, and its mission to deliver sustainable returns to shareholders by marketing premium almond products to the world. The capital raising is expected to provide the necessary balance sheet flexibility to facilitate the execution of the company's long-term growth strategy.