Freedom Nutritional Products Limited (“FNP” or the “Company”) today announced a private placement, subject to shareholder approval, of 10 million fully paid ordinary issued at $0.50 per share to raise A$5.0 million to Telunapa Pty Limited.
Telunapa Pty Limited is an entity associated with Mr. Terry Morris. Terry Morris is Managing Director of the Morris International Group of Companies, based on the Gold Coast and engaged in manufacturing, information technology, marketing and property development.
The proposed placement, representing 18.0% of FNP’s issued capital post raising, will result in the introduction of a substantial sophisticated investor, which together with FNP’s existing majority shareholder, the Perich Group, will further support the Company’s strategy of developing unique platforms in Nutrition markets in Australia and internationally.
The funds raised will strengthen the Company’s balance sheet and provide for acceleration of current initiatives including capital expenditure for organic growth in its Freedom Foods business and development of the A2 Dairy Products business.
As the Company continues to explore opportunities for growth, management and board are reviewing capital raising options for funding the business objectives in the medium term.
The placement of securities is subject to shareholder approval at a meeting of members to be held on 2nd April 2008. A notice of meeting will be sent to members in due course.
The Board welcomes the proposed introduction of Telunapa Pty Limited as a significant shareholder and looks forward to its ongoing support as the Company seeks to significantly advance its business activities.