Board will not seek to extend tomorrow’s schedule APO closing date
Distribution company Derrimon Trading has announced that it will be upsizing it’s additional public offer (APO) of shares, which closes tomorrow (January 26).
Due to the excess demand of subscriptions in the APO, the board of Derrimon has decided to exercise its option to up-size the invitation for subscription by an additional 301,301,069 in new ordinary shares. The company has advised that with the invitation having already been oversubscribed, the board will not seek an extension to the January 26, 2021 closing date.
Derrimon is seeking to raise $4.22 billion from its APO, which has been priced at $2.20 for existing shareholders and staff members and $2.40 for others.
It is the intention of Derrimon to apply to the Jamaica Stock Exchange for admission of the new ordinary shares to trade on the Junior Market. The application for admission is dependent on the company’s ability to raise at least $3.5 billion from the APO, which has already been achieved.
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Board will not seek to extend tomorrow’s schedule APO closing date
Distribution company Derrimon Trading has announced that it will be upsizing it’s additional public offer (APO) of shares, which closes tomorrow.
Due to the excess demand of subscriptions in the APO, the board of Derrimon has decided to exercise its option to up-size the invitation for subscription by an additional 301,301,069 in new ordinary shares. The company has advised that with the invitation having already been oversubscribed, the board will not seek an extension to the January 26, 2021 closing date.
Derrimon is seeking to raise $4.22 billion from its APO, which has been priced at $2.20 for existing shareholders and staff members and $2.40 for others.
It is the intention of Derrimon to apply to the Jamaica Stock Exchange for admission of the new ordinary shares to trade on the Junior Market. The application for admission is dependent on the company’s ability to raise at least $3.5 billion from the APO, which has already been achieved.
Given this reality, Derrimon’s subscribed participating voting capital will exceed the maximum of $500 million set by the Junior Market Rules. As such, Derrimon has been granted a waiver to remain listed on the Junior Market.
Derrimon has grown its business through the use of debt. As such, a significant amount of the proceeds will be used to reduce existing indebtedness and therefore reorganise the company’s capital structure so that a higher percentage of its cash flows will translate into benefits for shareholders.
New acquisitions
Derrimon, through its two latest acquisitions in the United States, has gained a controlling interest or 80 per cent stake in wholesale food distributor FoodSaver New York Inc. (FoodSaver NY) and specialty supermarket Good Food for Less LLC (Good Food NY).
The acquisitions, considered at a cost of approximately US$8.9 million, will provide the Jamaican distribution company with greater access to markets and more customers as the company moves to push its products globally.
Derrimon, through an incorporation of New York subsidiary Marnock LLC, will acquire control of the Brooklyn-based operations as a going concern. The consideration for the acquisitions will be in the form of both cash and shares and will result in Marnock issuing a 20 per cent minority interest to Oralcrys LLC — an entity beneficially controlled by the former operator of the businesses. The acquisitions are expected to be completed by the first quarter of this year.
Given this reality, Derrimon’s subscribed participating voting capital will exceed the maximum of $500 million set by the Junior Market Rules. As such, Derrimon has been granted a waiver to remain listed on the Junior Market
Derrimon has grown its business through the use of debt. As such, a significant amount of the proceeds will be used to reduce existing indebtedness and therefore reorganise the company’s capital structure so that a higher percentage of its cash flows will translate into benefits for shareholders.
New acquisitions
Derrimon, through its two latest acquisitions in the United States, has gained a controlling interest or 80 per cent stake in wholesale food distributor FoodSaver New York Inc. (FoodSaver NY) and specialty supermarket Good Food for Less LLC (Good Food NY).
The acquisitions, considered at a cost of approximately US$8.9 million, will provide the Jamaican distribution company with greater access to markets and more customers as the company moves to push its products globally.
Derrimon, through an incorporation of New York subsidiary Marnock LLC, will acquire control of the Brooklyn-based operations as a going concern. The consideration for the acquisitions will be in the form of both cash and shares and will result in Marnock issuing a 20 per cent minority interest to Oralcrys LLC — an entity beneficially controlled by the former operator of the businesses. The acquisitions are expected to be completed by the first quarter of this year.
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