Africa-Press – Zimbabwe. TEA producer, Tanganda Tea Company Limited, says it is finalising the preparation of a circular to shareholders ahead of a U$8 million capital raise.
Last month, Tanganda announced that it would no longer be pursuing a secondary listing on the Victoria Falls Stock Exchange, despite its initial intention to join the United States dollar-denominated bourse.
Instead, the firm announced plans for a capital raise through issuing new shares to shareholders to raise US$8 million.
“Further to the cautionary announcement dated 23 July 2025, the directors of Tanganda Tea Company Limited wish to advise shareholders and the investing public that the proposed capital raise by way of a renounceable rights offer, to the existing ordinary shareholders in proportion to their shareholding in the company to raise eight million United States dollars (US$8 million), is still under consideration,” Tanganda said in a statement.
“The company is currently finalising the preparation of a circular to shareholders incorporating notice to convene an extraordinary general meeting of members for the purpose of considering and approving the capital raise.”
Tanganda said the transaction, if successful, may have a material effect on the company’s share price.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until a full announcement is made,” it said.
In its half-year report for the period ended March 31, 2025, released in June, Tanganda announced it had put in place mitigating strategies to deal with challenges facing the business and was focusing on improving process efficiencies and managing costs to improve performance.
This comes after Tanganda recorded a 27% drop in revenue for the half year to US$8 million, from the prior year, owing to the impact of late rains on tea production and formal retail challenges that weighed down beverage volumes.
Consequently, Tanganda’s profit after tax was 73% down to US$539 983 during the half year from the prior year.
“Demand for our products remains relatively strong despite the impact of intricate macro-economic factors on the local, regional and international markets,” Tanganda chairperson Hebert Nkala said in the report.
“The company will continue to pursue sustainable market diversification to expand the regional and international markets.”
He said, notwithstanding the operating environment challenges, Tanganda remained focused on adding value to its products.
“The company is actively pursuing capital raising initiatives. Shareholders and the investing public will receive ongoing updates on their progress,” Nkala said.
The firm ended the period with US$1,63 to every dollar of short-term debt, should it become due, leaving the firm adequately capitalised for the current period.
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