Cooks Global Foods secures $10 million in new capital

NZAX & Media Release 20th March 2017

 

Cooks Global Foods secures $10 million in new capital

YunNan Metropolitan Construction Investment Group (YMCI) agrees to subscribe to $1.8 million in new Cooks shares as part of capital raising by cornerstone investors

Cooks Global Foods (NZAX.CGF) today announces that one of its major shareholders, the YunNan Metropolitan Construction Investment Group (YMCI), has agreed to subscribe for $1.8 million in new equity as part of a broader plan by the company’s cornerstone shareholders to raise at least $10 million.

The capital raising - first signalled in February - has the following components:

- YMCI contributing $1.8 million of new capital to Cooks by subscribing to 23,142,413 new shares at 7.75 cents per share.

- Jiajiayue Holding Group (JJY) contributing $3.5 million of new capital to Cooks by subscribing to 44,873,240 new shares at 7.75 cents per share.

- Keith Jackson underwriting a maximum of $4.7 million of new capital to be issued under a Share Purchase Plan (SPP) for existing shareholders at 7.75 cents per share.

Of the new capital to be contributed, $3.16 million will be applied to the capitalisation of existing loans from the major shareholders.

Cooks Global Foods Executive Chairman Keith Jackson said: “Cooks enjoys the support of significant partners both in China and around the world.

YMCI’s agreement to subscribe for new capital allows our $10 million capital raising plan to proceed and allows Cooks to put in place a capital structure to achieve its immediate growth plans around the world. We are looking forward with great confidence.”

The capital raising is subject to ordinary resolution approval by shareholders at a special meeting, at a date to be confirmed. Further details will be forthcoming as appropriate.

For further information:

Investors 
Keith Jackson 
Executive Chairman 
Tel: +64 9 304 0567 ext. 714.

Media 
Richard Inder 
The Project 
Tel +64 21 645 643

About Cooks Global Foods

Cooks Global Foods operates in world markets and is listed on the NZAX market operated by NZX Limited in New Zealand under the code CGF. It owns the intellectual property and master franchising rights to Esquires Coffee Houses worldwide excluding New Zealand and Australia. Cooks currently operates or franchises Esquires Coffee Houses in Canada, the United Kingdom, Ireland, Canada, the Middle East, , Indonesia, and China. For more information visit: www.cooksglobalfoods.com

About Jiajiayue Holding Group Limited

Jiajiayue Holding Group Limited is the major shareholder of Jiajiayue Group Limited (Shanghai Stock Exchange: 603708.SH) a listed entity trading on the Shanghai Stock Exchange, the later owns more than 600 supermarkets in Shandong Province, China and employs over 30,000 staff. Jiajiayue Holding Group currently holds a 25% stake in Cooks Global Foods.

About YMCI

YMCI directly holds a 13% stake in Cooks and is a major property development concern, owned by the Yunnan Provincial Government.