Agrifoods to reopen in May, to raise $5mln through rights issue

Agrifoods to reopen in May, to raise $5mln through rights issue

HARARE, March 8 (The Source) – Agrifoods is expected to resume operations in May after securing grain deal while awaiting capital injection of $5 million from its shareholders, creditors were told on Wednesday.

Agrifoods, Crest Poultry Group (CPG) and Manicaland Farmers are CFI subsidiaries which were placed under provisional judicial management on August 3 last year, with Reggie Saruchera of Grant Thornton as judicial manager.

The units were shut down last year after persistent losses over the past five years.

A representative of the judicial manager, Bulisa Mbano told creditors at High Court on Wednesday that shareholders were finalising the rights issue offer to inject capital.

“To date we are in the process of restructuring … The shareholders of Crest Poultry Group is CFI Holdings and are going through their internal processes to do a rights issue so that we can get capital,” said Mbano.

“We are also in the process of finalising a supplier agreement with a company that want to give us grain. The agreement is in final stages and by 15 May we should see Agrifoods in Harare and Bulawayo operating. This is an interim measure as we await the big chunk of funds from the shareholders.”

Agrifoods revenue is expected to reach $27 million, with gross profit of $4,9 million in the first year of judicial management.

Agrifoods and Agrimix owe creditors $10 million.