mbulelo smpofu
Nqobile Bhebhe, nqobile.bhebhe@chronicle.co.zw
TANGANDA Tea Company has moved in to address several key operational matters, including the proposed creation of Class A ordinary shares for listing on the Victoria Falls Stock Exchange (VFEX) as a secondary listing.
The company has said it is seized with preparing a circular to that effect, which will also cover details of a renounceable Rights Offer and convening of an Extraordinary General Meeting (EGM).
Last year, the company expressed interest in migrating its listing from the Zimbabwe Stock Exchange to VFEX.
However, it later decided to create a new class of shares to be listed on VFEX instead. Tanganda, listed on the ZSE, is an agribusiness company that produces, packs and distributes tea, coffee, avocados, macadamia nuts and spring water.
In a further cautionary announcement yesterday, Tanganda said it is finalising the preparation of a circular to shareholders.
“The circular will contain details of the following interrelated transactions and will also include a notice to convene an Extraordinary General Meeting (EGM) of members to consider and approve the transactions.
“The proposed creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the Victoria Falls Stock Exchange (VFEX) as a secondary listing, and a Renounceable Rights Offer of the listed Class A ordinary shares to the existing ordinary shareholders in proportion to their shareholding in the company to raise eight million United States dollars (US$8 million).”
It said the transactions, if successful, may have a material effect on its share price. A renounceable right is an offer issued by a corporation to shareholders to buy more shares of the company’s stock, usually at a discount.
VFEX, a US dollar-denominated stock exchange, is increasingly becoming the preferred stock exchange as it continues to evolve through new listings and new product development.
Since its inception in October 2020, VFEX has attracted listings from various sectors such as mining, financial services, tourism and clothing.
Siphakeme .Mnindwa
