NZRLC announces a $44.3 million Rights Offer

NZX Announcement
24 May 2021

New Zealand Rural Land Company announces a $44.3 million Rights Offer

New Zealand Rural Land Company Limited (NZX:NZL) announces a capital raising of $44.3 million by way of a 2 for 3 pro-rata renounceable rights offer. The proceeds will be used to reduce debt and provide further cash for acquisitions as NZL looks to continue its growth as a landowner in the New Zealand rural sector.

This rights offer of approximately $44.3 million will allow eligible shareholders to subscribe for 2 additional shares for every 3 existing shares held on the record date at $1.10 per share. This represents a 8.64% discount to the 10 day VWAP of $1.2041.

The full terms and conditions of the rights issue will be contained in an offer document which will be distributed to all eligible shareholders (as defined in the offer document) after the proposed record date. Further details on the rights offer follow below.

As shareholders will be aware, NZL expects to acquire 15 dairy assets on 1 June 2021 for a total purchase price of $122.74 million. If there are delays in completing settlement there will likely be a corresponding delay to the rights offer timetable outlined below.

NZL intends to apply to NZX for quotation of the rights shortly. A corporate action notice accompanies this announcement.

Shareholder Options

Subject to NZX accepting the application for quotation of rights, shareholders will have the following options under the rights issue:

Take up all or some Rights - You will be able to acquire shares at the Issue Price of $1.10 which is at a discount to the market price immediately prior to the announcement of the Rights Offer. If you take up all of your rights you will maintain your proportional ownership of NZL after the Rights Offer.

Sell all or some Rights - If you wish to sell your Rights, you should contact an NZX Broker. You will receive value for any Rights sold on-market but you may be required to pay brokerage on the sale of your Rights. There is no assurance that an active market for trading in Rights will develop
Let Rights lapse

If you do nothing, your Rights will lapse and you will not be able to subscribe for any new shares.

If you do nothing, your rights will lapse and you will not be able to subscribe for any new shares or realise any other value for your Rights. If shareholders are unsure of what course of action to take they should obtain independent financial advice.

Rights Issue Indicative Timetable

Shares quoted “ex-rights” and Rights Trading commences to the NZX Main Board 2 June 2021
Record date 5pm, Wednesday 3 June 2021
Offer documents sent and Offer opens for acceptance 4 June 2021
Rights trading ceases 17 June 2021
Rights offer closes (and last date for receipt of renunciations) 23 June 2021
New shares allotted and commence trading 28 June 2021

The Board may amend this timetable at its discretion, but subject to the Listing Rules.


Contact:
Christopher Swasbrook
Director
Mobile: 021 928 262
Email: [email protected]

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