WasteCo Group - SPP

WasteCo announces $3 million capital raising

Summary

• WasteCo announces a $2.5m share purchase plan, with the ability to accept oversubscriptions
• SPP expected to open on 14 August 2023 and close on 23 August 2023
• An additional placement to raise a further $0.5 million from existing shareholding entities associated with two directors, to be completed in conjunction with the SPP
• New equity to be used to support the acquisition of the BCL waste collection business, support growth of existing business and for future acquisition opportunities


Capital raising details

WasteCo is pleased to announce a fully underwritten share purchase plan (SPP) to raise $2.5 million, with the ability for shareholders to apply for oversubscriptions before new shares are allocated to the underwriters. WasteCo will also complete a private placement to raise an additional $0.5 million from existing shareholders associated with directors Shane Edmond (Chairman) and James Redmayne (Director/CEO).

The SPP is being fully underwritten by a selected group of existing eligible shareholders (up to the $2.5 million SPP amount).

The SPP will be open to all shareholders registered on WasteCo's share register as at 5.00pm on 10 August 2023 (Record Date) who have a registered address in New Zealand (and who are not holding shares on behalf of a person who resides outside New Zealand).

It will provide the opportunity for eligible shareholders to apply for up to NZ$15,000 of new shares at a fixed issue price of $0.065 per new share (being the same price as under the June placement). The WasteCo Board reserves the right to accept oversubscriptions under the SPP. If scaling is required, WasteCo will scale applications having regard to the number of shares held by the applicant on the Record Date and otherwise at its discretion.

The SPP is subject to the terms and conditions set out in the SPP offer booklet which will be sent or made available to eligible New Zealand shareholders and is available together with this announcement.

All eligible shareholders are encouraged to read the SPP offer booklet carefully and if in any doubt about whether or not to apply for shares under the SPP, to consult with their broker or other professional advisor. Eligible shareholders are encouraged to apply online at https://wco.capitalraise.co.nz.

Applications under the SPP will open on 14 August 2023 and close on 23 August 2023.

The further private placement of new shares will be made to interests associated with existing shareholders to raise an additional $0.5 million, at an issue price of $0.065 per new share, being the same issue price as the SPP. WasteCo reserves the right to increase the size of the private placement at its discretion.

The new shares under the SPP and further placement will be issued on the same date and will rank equally in all respects with WasteCo's existing ordinary shares.

The funds raised through the SPP and placement will provide WasteCo with the scope and flexibility to grow its existing business through the various contract partnership and/or acquisition opportunities currently available, including the recently announced conditional acquisition of the waste collection business of Bond Contracts Limited.


Current trading

WasteCo currently has a considerable pipeline of new opportunities across the South Island and continues to work closely with its partner customers to find innovative solutions that will meet the expectations of consumers and regulatory requirements.

A recent success is securing a new contract with LSG Sky Chefs dealing with the quarantine waste requirements from Queenstown Airport, which is opening several other exciting opportunities for WasteCo's quarantine business unit.

In addition to the conditional acquisition of the Bond Contract waste collection business, WasteCo completed two other acquisitions earlier in the year which have expanded its footprint in the South Island and are expected to contribute to significant revenue growth in the second half of the financial year to 31 March 2024.

WasteCo expects company earnings to be weighted towards the second half of the financial year as the costs associated with the acquisitions impact the first half and the benefits are expected to materialise in the second half, including a waste pricing increase put in place in July.

WasteCo considers that the SPP, placement and the acquisition of Bond Contracts will position it for continued growth in revenues.


Additional information

Additional details about the capital raising is contained in the presentation which accompanies this announcement. A cleansing notice and corporate action notice also accompany this announcement.

Please refer to the attachment for details of the indicative capital raising timetable. All dates and times are indicative only and subject to change.


About WasteCo

WasteCo is a leading South Island waste solutions company, processing and diverting liquid and solid waste from landfill. It provides comprehensive solutions for household, commercial, industrial and local authority customers.

WasteCo is New Zealand’s only diamond certified Toitū Enviromark waste solutions provider and delivers outcomes that ensure its customers are at the leading edge of the sustainability frontier.

The company provides waste and sorting options as well as waste remediation, sweeping and industrial cleaning services – all delivered using leading edge technology and highly trained customer focussed staff.

The Christchurch-based business was established in 2013.

ENDS

For enquiries:

Shane Edmond
Non-Executive Chair
WasteCo Group Limited
Mobile: 021 995 519

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Announcement PDF