Cosmetic and fragrence company Trilogy International is betting on a $25 million cash injection to give its growth plans a shot in the arm.
Photo: Ecoya
The company is to sell $20 million in new shares, and offer its existing shareholders the chance to buy $5 million worth of shares.
Trilogy's 48 percent shareholder, the Business Bakery, is also taking the opportunity to reduce its stake by selling $30 million worth of shares, although it will maintain at least a 30 percent holding.
The underwritten deal has been priced at $3.70 a share, which was a 7.5 percent discount to the last traded price. The company remains on a trading halt while the share sale is completed.
Trilogy chief executive Angela Buglass said the proceeds of the capital raising will be used to pay down debt and then invest in products and market development.
"Our plans are to develop products and invest into markets that are showing potential, America is a very strong opportunity for Trilogy skincare, but overall the New Zealand and Australian markets still offer a great opportunity to expand our business."
The Auckland-based company more than doubled its annual profit to $9.4 million in the 12 months to March, while revenue jumped 127 percent to $83.1 million.
It is best known for its Ecoya scented candles and soaps and Trilogy fragrances. It bought perfume and cosmetics distribution business CS Company last year for $37 million.
The company also plans to list on the Australian stock exchange and Ms Buglass said the share sale will improve liquidity in trading the stock and allow Australian institutional investors to buy into it.
