CGF seeks approval for share buy back programme
14 June 2017
Cooks Global Foods (NZX.CGF) today announces it is seeking shareholder approval under the Takeovers Code to implement a buy back for up to 20 million shares over time. If approved, the programme will give Cooks the flexibility to respond at times when it considers the market price of its shares is lower than is justified by the underlying value of its assets.
Cooks also releases its notice of special meeting to approve the buy back programme as well as the previously-announced commitment from its major shareholders, Jiajiayue Holding Group Limited (JJY), Yunnan Metropolitan Construction Investment Group Co Ltd (YMCI) and Cooks Executive Chairman Keith Jackson, to support a plan to raise at least $10 million in new equity.
“Cooks Global Foods offers investors an opportunity to share in the growth of a fast-growing artisan-style Organic & Fairtrade coffee franchise that builds on New Zealand’s leadership of global café culture,” Mr Jackson said.
“For each quarter for the last two years, our global network of coffee houses has achieved a double-digit rate of sales growth. This growth is giving rise to a strong and rising recurring revenue stream made up of franchise fees, royalty payments, beverage supply sales and design and technical services fees. It also promises to lift the value of several related ventures in which the company holds equity.
“The capital raising is pivotal to the company realising the potential from this business. It will resource Cooks to accelerate the growth of the Esquires Coffee store chain internationally; support the company’s recently announced initiatives to focus on its core business operations and move towards positive operating cashflows; and reduce debt (including capitalising loans outstanding to JJY and YMCI). Meanwhile, the share buyback programme gives the company a tool to effectively manage its capital.”
The notice of meeting also includes a Simmons Corporate Finance independent advisors report on the capital raising and the share buyback programme. The report finds the positive aspects of the capital raising and the proposed share buyback programme outweigh the negative aspects.
“The board encourages all shareholders to attend the meeting and vote in favour of the resolutions. In addition to taking part in the discussion, the meeting represents a great opportunity to hear about the progress Cooks is making around the world,” Mr Jackson said.
The special meeting will be held at the NZX Limited Offices, Level 7, Zurich House, 21 Queen Street, Auckland on Thursday, 29 June 2017 at 10am.
Tel: +64 21 702 509
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 in Canada, the United Kingdom, Ireland, Bahrain, Kuwait, Saudi Arabia, UAE, Indonesia, and China.
For more information visit: www.cooksglobalfoods.com