Pure Foods Tasmania (ASX: $PFT) equity raise details

Pure Foods Tasmania Limited (ASX: $PFT) has announced its plan to undertake an equity raise via a rights issue to raise approximately $2.2 million at the Offer Price of $0.04 per share. The company's current ordinary shares on issue is 110,294,712, and assuming all rights are taken up, the Entitlement Offer would add 55,147,356 New Shares. The company has received firm commitments from several shareholders of $500,000, including the three Directors. The funds raised will enable PFT to continue growth in organic sales, improve operating efficiencies and capacity, secure key assets, exploit new product expansion opportunities, and fund due diligence in relation to potential acquisitions and associated costs.

Pure Foods Tasmania (ASX: $PFT) executive commentary

Today's raising will allow PFT to continue growth in organic sales, improve operating efficiencies and capacity, secure key assets and exploit new product expansion opportunities. It will also provide funding for due diligence in relation to potential acquisitions and associated costs.

Pure Foods Tasmania (ASX: $PFT) equity raise summary and outlook

Pure Foods Tasmania Limited (ASX: $PFT) is set to raise approximately $2.2 million at the Offer Price of $0.04 per share through an equity raise via a rights issue. The company aims to utilize the funds to continue growth in organic sales, improve operating efficiencies and capacity, secure key assets, exploit new product expansion opportunities, and fund due diligence in relation to potential acquisitions and associated costs. PFT's strategy is to develop new premium products within its existing brands and in the plant-based food market, acquire complementary brands and businesses, and increase market penetration and distribution for its suite of brands and products globally. The company has also outlined its usage of funds, including accelerating growth, driving production efficiencies, and exploring new product expansion opportunities. However, the company has also highlighted key risks associated with its operations, including reduction in demand for existing product ranges, food safety and sanitation, environmental regulations, and obtaining and maintaining licenses, among others. PFT's strong customer base continues to increase, and the company is focused on integrating new products and driving production efficiencies to support its growth initiatives.