Trading in the Letters of Allocation of Tanganda Tea Company Limited has commenced following shareholder approval at an Extraordinary General Meeting (EGM) held on February 16, 2026, the Zimbabwe Stock Exchange (ZSE) has said.
In a notice, ZSE chief executive Mr Justin Bgoni said the development is in line with the resolutions passed at the EGM and the timetable outlined in the circular to shareholders dated 27 January 2026.
The Letters of Allocation form part of the company’s approved corporate action to raise US$8 million through a renounceable rights offer, which allows eligible shareholders to trade their rights on the market within a defined trading window.
Tangansa intends to raise US$8 million through a rights offer of 263 821 324 new ordinary shares at a subscription price of US$0,0303 per share.
The shareholders will be entitled to subscribe for one new share for every 0,9896 shares held at the record date of February 23, 2026, with payments payable in full in United States dollars.
Trading in the company’s Letters of Allocation started on Tuesday, Mr Bgoni.
“On the first day of trading, circuit breakers will be opened to facilitate efficient and orderly price discovery. Trading in the Letters of Allocation will close on Tuesday, 17 March 2026, in strict accordance with the timetable set out in the circular to shareholders dated 27 January 2026,” Mr Bgoni said.
Circuit breakers are a standard market mechanism designed to manage excessive volatility, particularly during the initial trading sessions of new instruments or rights-related securities.
The commencement of trading provides shareholders with flexibility, enabling them either to realise value by selling their allocation rights on the market or to proceed with participation in the underlying transaction, depending on their individual investment strategies and liquidity requirements.
Tanganda is raising the capital as the diversified agricultural exporter seeks to stabilise its balance sheet, address a deepening working capital deficit and fund critical capital expenditure.
The company said the decision to raise fresh equity capital was driven by persistent cash flow pressures that emerged during the Covid-19 pandemic period, which resulted in a cash deficit of approximately US$6,36 million.
According to Tanganda, a significant portion of the proceeds will be allocated towards working capital requirements, including the procurement of packaging materials and production inputs for packed tea and bottled water.
The funds will also be used to service outstanding debts owed to key suppliers of fertilisers, chemicals and fuel, as well as to ensure the timely payment of salaries and wages.
In addition to working capital support, part of the capital raised will be used to replace the water bottling plant and refurbish infrastructure at Tingamira Estate.
The rights offer will also finance the grid-tying of three existing solar plants at Ratelshoek Estate, Jersey Estate and Tingamira Estate.
Tanganda said connecting the solar installations to the grid would allow the company to fully realise the benefits of its previous investments in renewable energy, particularly in the context of ongoing power shortages and high electricity costs.
Further capital expenditure will be directed towards the acquisition of delivery trucks for the Beverage Division, which is expected to enhance distribution capacity and support the growth of value-added product sales.
Tanganda said it remains optimistic about its long-term prospects following its transformation from a tea-focused operation into a diversified agricultural export business.-herald
