Harare, (New Ziana) – Listed clothing manufacturer and retailer, Edgars Stores Limited on Wednesday extended by three weeks the deadline for the closure of its rights offer in which the company is seeking to raise ZW$70 million to recapitalise operations.
The rights offer, which opened on June 23 and was meant to close on 17
July, has been extended to August 7, necessitated by the closure of the ZSE.
“The Board wishes to advise its stakeholders that following the closure of the Zimbabwean Stock Exchange, Edgars Stores Limited has decided to extend the rights offer period by an additional three weeks and resultantly the rights offer closure date has been revised from the original date of Friday the 17th of July 2020 to Friday 7th of August 2020,” Edgards said in a notice to the market.
“Additionally, stakeholders should be advised that Letters of allocation will be tradeable once the ZSE re-opens.”
Government shut down the bourse in late June following accusations that the ZSE was being used to undermine stability of the local currency through speculative trading.
No date is yet to be set on its re-opening.
Through the rights offer, Edgars offered 274 745 630 ordinary shares of a nominal value of ZWL$0.01 at a price of ZWL$0.2548 per share on the basis of five new ordinary shares for every six ordinary shares already held.
Edgars said the funding would allow the clothing manufacturer and retailer to maintain sustainable growth and profitability of the
businesses going forward.
The funds would, among other things, be used to intensify productivity of existing footprint, widen and deepen product portfolio offered by the group’s credit and financial services and enhanced planning tools and manufacturing capacity as well as refurbishment at its stores.
The Edgars group includes its chain stores, Edgars and Jet, manufacturing arm, Carousel, microfinance unit Club Plus and its Financial Services arm which manages the retail debtors’ book and insurance products including the Hospital Cash Plan.