Truworths working capital to fund expansion projects

CLOTHING retailer Truworths plans to issue a rights offer to raise working capital requirements and fund expansion initiatives.

In a cautionary statement to shareholders on Monday, the firm did not indicate the amount targeted.

“The Directors of Truworths Limited (“Truworths” or “the Company”) wish to advise all shareholders and the investing public that the company is engaged in discussions that involve a potential transaction that may have a material impact on the value of the Company’s shares,” it said.

“The transaction involves raising capital for the Company’s working capital requirements and expansion initiatives through the issuance of shares by way of a rights offer.

“Further details of the transaction will be provided in a circular to shareholders that is being finalised. Shareholders are, therefore, advised to exercise caution when trading in the Company’s shares,” reads the cautionary statement.-chronicle