OLIVE oil producer Olea Australis cut its recent capital raising by nearly half in a bid to attract investment.
The company, which markets the Dandaragan olive oil brand, originally planned to raise $5.1 million via a pro-rata renounceable rights issue at five cents per share in August, however this week announced a placement and rights issue priced at 2.5 cents a share to raise $3.3 million. Montagu Stockbrokers has underwritten the rights issue and secured a placement of 15 million shares worth $375,000 for Montagu clients.
Olea Australis directors Ken Richards and Trevor Clohessy will sub-underwrite $1.1 million, replacing the original intent by Olea Australis directors to underwrite $2.5 million.
At June 30 2004 Olea Australis had a cash balance of $50,000 and had borrowed $826,000 under a bank overdraft.
Executive chairman John Gus Simpson resigned from the company following an Australian Investment and Securities Commission charge that he knew or should have known that average production yields for olive trees in the prospectus issued in March 2000 was false in a material particular.
Mr Simpson has denied the allegation.
Olea Australis this week announced that former company secretary Stephen Randell faced court for similar ASIC charges. He has pleaded not guilty.
