Seeka Limited has announced a new capital raising strategy to be implemented over the course of the next three years, including a Rights Issue, an issuance of shares under a new Grower Share Scheme and an issuance of shares under Seeka's existing Employee Share Ownership scheme.

The purpose of the capital raising strategy is to strengthen its balance sheet and provide Seeka with the financial flexibility and freedom to pursue its growth strategy of becoming New Zealand's leading orchard-to-market business.

The first step is for Seeka to undertake a fully underwritten pro rata renounceable Rights Offer commencing on November 21 2018 and closing on December 7 2018.

This Rights Offer:

Seeks to raise approximately NZ$50 million of new equity via a pro rate one for 1.5 Rights Offer at NZ$4.25 per share (fully underwritten by First NZ Capital Group Limited).

Includes a bookbuild to be undertaken at the end of the Rights Offer period for any shortfall. As a consequence, shareholders not taking up all of their rights (including ineligible shareholders) may receive value for their rights not taken up.

Seeka also announces its intention to introduce a new Grower Share Scheme and Employee Share Scheme in the first quarter of 2019 to further align the interests of Seeka, its employees and grower supplies, many of whom are shareholders.

'We are excited about Seeka's plans for growth and out continual pursuit towards being New Zealand's leading orchard-to-market business,” says Chairman of Seeka, Fred Hutchings.

'Seeka will use the capital raised to strengthen our balance sheet, repay bank debt, undertake planned capital expenditure and give us greater financial flexibility and freedom to deliver better value for our shareholders.”

Rights Offer and Bookbuild:

Under the Rights Offer, eligible shareholders are entitled (but not obliged) to subscribed for one new share for every 1.5 existing shares held as at 5pm on the record date of November 20 2018, at an issue price of $4.25 per new share. This represents a 25.4 percent discount to the closing share price on the NZX on November 9 2019 and a 17.0 percent discount to the theoretical ex-rights price of $5.12 per share, post the Rights Offer, based on the pre-announcement close of $5.70.

Eligible shareholders may choose to take up all, some or none of their rights. Any rights that are not taken up, including rights of ineligible shareholders, will be offered for sale through a bookbuild at the end of the Rights Offer period.

Eligible retail shareholders that have taken up all of their rights will have the opportunity to participate in the bookbuild alongside institutional investors. Rights will not be quoted on the NZX Main Board – there will be on licensed market on which shareholders can sell their rights.

Full details of the Offer will be sent to eligible shareholders from November 21. Infromation on the Offer, including the Offer Document released on the NZX market announcement platform, are available at www.seekshareoffer.com or on the NZX by searching Seeka's stock code (SEK) at www.nzx.com/companies/SEK.

Existing New Zealand shareholders will have a preferential position in the bookbuild should they wish to subscribe for more shares than their entitlement under the Rights Offer.