Tanganda, no longer migrating to VFEX , creates a new class of shares

Tanganda Tea Company says it is no longer interested in migrating its listing to the Victoria Falls Stock Exchange (VFEX) and instead will be creating a new class of shares that will be listed on VFEX.

In a statement, Tanganda said the new class of shares, to be known as Class A ordinary shares, will be subsequently listed on the VFEX as a secondary listing.

“The directors no longer recommend the migration of Tanganda’s listing to VFEX,” reads the statement.

The company noted that a capital raise by way of a renounceable rights offer to raise US$8 million will follow soon after the issuing, listing, and allotment of Class A ordinary shares to the existing ordinary shareholders in proportion to their shareholding in the company.

“These initiatives are intended to enhance the company’s capital structure, diversify shareholder offerings, and ensure liquidity of the company’s shares,” said the company.

Tanganda said the transactions, if successful, may have a material effect on the company’s share price; accordingly, shareholders are advised to exercise caution when dealing in the company’s shares.

The initial proposal was the migration of Tanganda’s listing to VFEX and raising US$7.7 million through a renounceable offer.

Tanganda, listed on the Zimbabwe Stock Exchange (ZSE), is an agribusiness company that produces, packs, and distributes tea, coffee, avocados, macadamia nuts, and spring water.

VFEX, a US dollar-denominated stock exchange, is increasingly becoming the preferred stock exchange as it continues to evolve through new listings and new product development.

Since its inception in October 2020, VFEX has attracted listings from various sectors such as mining, financial services, tourism, hospitality, and clothing.

Justin Bgoni, the VFEX chief executive earlier in the year, said the bourse continues to attract listings from both domestic and foreign companies.

In a trading update for the quarter to June 30, 2024, Tanganda’s bulk tea production yield of 7,293 metric tonnes was affected by the late onset of the rains in the first quarter of the year, recovered, and was in line with prior year production.

The company said demand for its packed tea products remains firm in both the local and regional markets, and the focus is on sustained diversification of the market.

However, export volumes for the quarter under review declined by 9 percent to 4,504 metric tonnes from 4,959 metric tonnes achieved the prior year due to the timing of sales, as production was more concentrated in the third quarter.-ebsinessweekl