Half Year Announcement & Cooks in talks to raise new equity
Cooks in talks to raise new equity
Esquires Coffee franchisor releases interim report for the six months to 30 September 2016
Cooks Global Foods (NZAX:CGF) today announces it is in the advanced stage of negotiations with its Chinese shareholders Jiajiayue Holding Group Limited (JJY, formerly known asShandong Jiajiayue Investment Holding Co. Limited) and Yunnan Metropolitan Construction Investment Group. Ltd (YMCI) to support the raising of new equity by Cooks to fund the continuing growth of the Esquires Coffee network. The new funding proposals are subject to ratification by the respective Boards, Chinese government approval and CGF Shareholder approvals. Further announcements will follow as soon as Subscription Agreements are signed.
Releasing the company’s interim report for the six months to 30 September 2016, Cooks Global Foods Executive Chairman Keith Jackson said: “We are delighted with the support of our major shareholders who share the growth, vision and aspirations for the company”.
JJY holds a 25% stake in Cooks and is developing Esquires Coffee stores in a joint venture arrangement in Shandong Province. It is a top-30 retailer in China, operating more than 600 supermarkets as well as shopping malls and convenience stores. It also invests in commercial real estate. YMCI directly holds a 13% stake in Cooks and is a major property development concern, majority owned by the Yunnan Provincial Government.
Complimentary to the equity raising for the growth projects, Cooks is also offering an issue of Redeemable Convertible Notes to qualified investors with a 3 year term and 9% interest rate that closes on 16 December 2016.