Four times more shares in Invermar
A proportion of 4: 1 (new shares for each old share) is reflected in the capital increase recently approved by the Extraordinary Shareholders' Meeting of the Chilean salmon producer.
This injection of fresh resources, ratified earlier this week, involves the issuance of 1,168,974,100 cash shares, to be paid in respect of shares to be subscribed by the controlling company - the fish feed producer Alimar - through capitalization of debts that Invermar keeps with Alimar; and cash, in the case of those subscribed by the remaining shareholders.
Four to one
In comparison, Invermar has 288,805,366 shares subscribed and paid in the local stock market. That is, the new issue is of about 4.05 new shares for each existing one.
According to the information provided by the company to the Superintendency of Securities and Insurance, this stock transaction established a value per share of US$ 0.072713 (same price set in Invermar’s OPA last year) which, multiplied by the nearly 1,169 million shares to be issued, would allow the company to raise about US$ 85 million.
Allocation of resources
These fresh resources would be used primarily to repay debts. In this regard, liabilities whose capitalization was approved are: 1) mutual awarded by Alimar to Invermar according to public deed of March 30th, 2015, when taking control of the company, for US$ 70 million used by the salmon producing company to pay debts with various banks; and 2) US$ 47 million on loans in current account granted by Alimar during the months of June and July 2015 for US$ 25 and US$ 22 million, respectively, in order to pay debts to suppliers and to finance working capital.
The most recent stock transactions of these papers were made last June 16th, when the value per share reached $ 49 (US$ 0.07), while its highest price this year was recorded in the second half of March, when it was around $ 80 (US$ 0.12).
