GSPP Prospectus 2018
Released
Released
Announcement PDF
PROSPECTUS 2018
1
For the issue of B Class Shares under the Grower Share Purchase Plan Offer (“2018 GSPP
Offer”)
The 2018 GSPP Offer closes at 5:00pm (Sydney time) on Friday, 21 September 2018.
The 2018 GSPP Offer is not underwritten.
THE SECURITIES OFFERED PURSUANT TO THIS PROSPECTUS ARE NOT BEING OFFERED ON THE
BASIS OF THE ELECTRONIC PROSPECTUS DISPLAYED. SECURITIES WILL ONLY BE ISSUED AND
ALLOTTED ON THE BASIS OF AN APPLICATION FORM TO BE ISSUED TO ELIGIBLE GROWERS
TOGETHER WITH THIS PROSPECTUS.
This document is a transaction-specific prospectus issued in accordance with section
713 of the Corporations Act. It contains important information about the 2018 GSPP
Offer. You should read this document in its entirety before making any investment
decision. If after reading this document, you have any questions about the 2018 GSPP
Offer, you should speak to your professional adviser.
FRONT COVER: Gogeldrie grower Barry Kirkup
IMPORTANT NOTICE
This Prospectus is dated 27 August 2018 and was lodged with ASIC on that date.
Applications will be made for listing of the New Shares offered by this Prospectus to
the NSX. The fact that NSX may list the New Shares is not to be taken in any way as an
indication of the merits of the Company or the New Shares. The NSX takes no responsibility
for the contents of this Prospectus, makes no representations as to its accuracy or
completeness and expressly disclaims any liability whatsoever for any loss howsoever
arising from or in reliance upon any part of the contents of this Prospectus. Neither ASIC
nor any of its officers takes any responsibility for the contents of this Prospectus or the
merits of the investment to which this Prospectus relates.
It is important that you read this Prospectus carefully and in full before deciding whether
to subscribe for New Shares and investing (in the case of existing Shareholders, investing
further) in the Company pursuant to the 2018 GSPP Offer. In particular, you should
consider the risk factors that could affect the financial performance of the Company in light
of your personal circumstances (including financial and taxation issues). This Prospectus
does not provide investment advice and has been prepared without taking into account
your financial objectives, financial situation or particular needs (including financial or
taxation issues). You should seek professional investment advice if you have any questions
about any matter contained in this Prospectus.
Certain terms and abbreviations used in this Prospectus have defined meanings, which
are explained in the Glossary at Section 7. In this Prospectus, the words “the Company”,
“SunRice”, “we”, “our” and “us” refer to Ricegrowers Limited. The words “you” or “your” refer
to persons to whom the 2018 GSPP Offer is made, being Eligible Growers.
No securities will be issued on the basis of this Prospectus later than 13 months after the
date of this Prospectus, being the expiry date of this Prospectus. Application for quotation
of the New Shares will be made to the NSX within seven days after the date of this
Prospectus.
This Prospectus is a transaction specific prospectus for an offer to acquire continuously
quoted securities (as defined in the Corporations Act). The Company is an NSX listed
company whose B Class Shares have been granted official quotation by NSX. In preparing
this Prospectus regard has been had to the fact that we are a disclosing entity for the
purposes of the Corporations Act and that certain matters may reasonably be expected
to be known to investors and the professional advisers who investors may consult. This
Prospectus has been prepared in accordance with section 713 of the Corporations Act
and does not contain all the information that an investor would find in a prospectus in
connection with an initial public offering. Nevertheless, this Prospectus contains important
information in connection with the rights and liabilities attaching to the New Shares and
the effect of the 2018 GSPP Offer on the Company and requires your immediate attention.
No person is authorised to give any information or to make any representations in
connection with the 2018 GSPP Offer that is not contained in this Prospectus. Any
information or representation that is not contained in this Prospectus may not be relied
upon as having been authorised by any of the Directors or by the Company.
Future matters and intentions
This Prospectus contains both historical and forward-looking statements. All statements
other than statements of historical fact are, or may be deemed to be, forward-looking
statements. These statements may sometimes be identified by the use of forward-looking
words such as “believe”, “aim”, “expect”, “anticipate”, “intending”, “foreseeing”, “likely”,
“should”, “planned”, “may”, “estimate”, “potential” or similar words or phrases. Similarly,
statements that describe SunRice’s objectives, plans, goals or expectations are or may
be forward-looking statements. All forward-looking statements in this Prospectus reflect
the current expectations of SunRice concerning future results and events. These forwardlooking statements involve known and unknown risks, uncertainties and other important
factors that could cause the actual results, performance or achievements to be materially
different from expected future results, performance or achievements expressed or
implied by those statements. Any forward-looking statements reflect views held as at the
date of this Prospectus. SunRice believes that the views reflected in any forward-looking
statements are reasonable.
Please note however, that neither SunRice nor its directors or officers, or any other person
gives any representation, assurance or guarantee that the events or achievement of results
expressed or implied in any forward-looking statements in this Prospectus will actually
occur. You are cautioned not to place undue reliance on such forward-looking statements
and all subsequent written or oral forward-looking statements attributable to SunRice are
qualified by this cautionary statement. Subject to any continuing obligations under law or
the Listing Rules, SunRice gives no undertaking to update or revise any forward-looking
statements after the date of this Prospectus to reflect any changes in expectations in
relation thereto or any change in events, conditions or circumstances on which any such
statement is based.
1
IMPORTANT NOTICE
(CONTINUED)
Restrictions on distribution
The 2018 GSPP Offer is made to Eligible Growers that are resident in Australia. This
Prospectus does not constitute an offer in any overseas jurisdiction where it would be
unlawful to make the 2018 GSPP Offer. You must ensure compliance with all laws of any
country relevant to your Application. We will take the return of a completed Application
Form as a representation by you that there has been no breach of any laws and that you
are an Eligible Grower.
Please contact us if you wish to obtain a hard copy of this Prospectus free of charge (see
Corporate Directory).
A copy of this Prospectus can be downloaded from our website at www.sunrice.com.au. If
you access the electronic version of this Prospectus, you should ensure that you download
and read the entire Prospectus. The electronic version of this Prospectus is only available
to Australian residents. This Prospectus (including the electronic version of this Prospectus)
is not intended for, and should not be distributed to or retained by, any person other than
an Eligible Grower.
Privacy Disclosure
By completing the Application Form accompanying this Prospectus, Applicants will be
providing personally identifiable information to the Company, its officers, employees,
agents, contractors and third party service providers (including the Share Registry)
(collectively, Collecting Parties). The personal information collected may include (but is not
limited to) the Applicant’s full name, date of birth, addresses and phone numbers.
The collection and management of the Applicant’s personal information is conducted in
accordance with the Privacy Act 1988 (Cth), which governs the use of a person’s personal
information and sets out principles governing the ways in which organisations should
treat personal information. Personal information that the Collecting Parties collect from
Applicants through their Application Forms is used to evaluate Applications and in the case
of successful Applications, to issue securities in the Company to successful Applicants and
provide services and appropriate administration in relation to those Applicants’ security
holdings in the Company. If the Collecting Parties are obliged to do so by law, Applicants’
personal information will be passed on to other parties strictly in accordance with legal
requirements. Once personal information is no longer needed for our records, the
Collecting Parties will destroy or de-identify it.
By submitting an Application Form, each Applicant agrees that the Collecting Parties
may use the personal information provided by an Applicant on the Application Form for
the purposes set out in this privacy disclosure statement and may disclose it for those
purposes to the Company and its related bodies corporate, agents, contractors and third
party service providers, including the Share Registry, mailing houses and professional
advisers and to the NSX and other regulatory authorities.
The Corporations Act requires the Company to include information about Shareholders
(including name, address and details of the Shares held) in its public register and disclose
such information to ASIC and persons inspecting the register. The information contained
in the Company’s public register must remain there even if that person ceases to be a
Shareholder. Information contained in the Company’s registers is also used to facilitate
corporate communications (including the Company’s financial results, annual report and
other information that the Company may wish to communicate to its Shareholders) and for
the purpose of compliance with legal and regulatory requirements.
If you do not provide the information required on the Application Form, the Collecting
Parties (as relevant) may not be able to accept or process your Application.
Further information about the Company’s management of personal information, including
how an Applicant may request access to or seek the correction of his or her personal
information or submit a complaint or a general privacy-related query, is contained in our
Privacy Policy, available at www.sunrice.com.au/corporate/statements/privacy-policy/.
Currency and Time
All references in this Prospectus to dollar, cents, “$” or “A$” are to Australian currency,
unless otherwise indicated. All references in this Prospectus to time are to the time in
Sydney, New South Wales, Australia.
2
KEY DATES
TIMETABLE OF THE 2018 GSPP OFFER
MONDAY 27 AUGUST 2018
MONDAY 3 SEPTEMBER 2018
MONDAY 3 SEPTEMBER 2018
Prospectus lodged with ASIC
Anticipated despatch of Prospectus,
Application Forms and Direction Forms
to Eligible Growers
2018 GSPP Offer opens (Opening Date)
FRIDAY 21 SEPTEMBER 2018
FRIDAY 21 SEPTEMBER 2018
Last date for returning Direction Form
Date for determining eligibility to be
issued New Shares under the 2018
GSPP Offer (Record Date)
Announcement of GSPP Offer and
lodgement of Prospectus with NSX
AGM
20 SEPTEMBER 2018
SunRice 2018 Annual General Meeting
and B Class Meeting
21 SEPTEMBER 2018
2018 GSPP Offer closes (Closing Date)
(Last date for returning Application
Form)
FRIDAY 28 SEPTEMBER 2018
Issue of New Shares subscribed for
under the 2018 GSPP Offer
WEDNESDAY
3
* As set out in the Notices of Meetings
and Explanatory Booklet released by the
Company on 27 July 2018, the Company
is seeking Shareholder approval to
implement an ASX Proposal which involves,
in general terms, the migration of the
listing of B Class Shares from the National
Stock Exchange of Australia (NSX) to the
Australian Securities Exchange (ASX), and
changes to the Constitution to enable B
Class Shares to be acquired by investors
generally. There is no guarantee that the
ASX Proposal will be implemented or that
2018
NEW SHARES COMMENCE
TRADING ON NSX
the B Class Shares will become quoted on
the ASX.
The above timetable is indicative only
and is subject to change. Subject to the
Corporations Act and the Listing Rules,
the Company reserves the right to vary
the dates in connection with the 2018
GSPP Offer, without prior notice. This
may include extending the Closing Date
of the 2018 GSPP Offer or accepting
late acceptances, either generally or
in particular cases. The Company also
reserves the right not to continue with
the 2018 GSPP Offer at any time before
the allotment and issue of New Shares to
successful Applicants. Eligible Growers are
encouraged to submit their Applications as
soon as possible.
Any material changes to the above
timetable will be announced by the
Company on its NSX announcements
platform. The Company’s announcements
are accessible from NSX’s website at www.
nsxa.com.au under the code “RGWB”.
3
CHAIRMAN’S LETTER
Dear Grower / Shareholder,
Last year, the Board introduced the
Grower Share Purchase Plan (GSPP). The
GSPP allows our Eligible Growers to build
an economic interest in the Company
through a B Class Shareholding and also
provides us with an opportunity to raise a
small amount of additional capital.
Your Board is pleased to again offer Eligible
Growers the opportunity to participate in
the GSPP this year, pursuant to the 2018
Grower Share Purchase Plan Offer (2018
GSPP Offer) made under this Prospectus.
We know many of you have expressed an
interest in acquiring B Class Shares and, as
always, we welcome your participation in
the GSPP and in SunRice in this way.
Notwithstanding that, I would like to note
that participation in the GSPP is optional. It
is also separate from the ASX Proposal we
are asking A and B Class Shareholders to
consider at the time of the SunRice AGM.
The 2018 GSPP Offer will run irrespective
of the outcome of the vote on the ASX
Proposal.
Eligible Growers should understand
that shareholders are exposed to risks
associated with SunRice and that many
of the circumstances giving rise to
these risks are beyond the control of
SunRice, including climatic factors, global
commodity markets, sovereign risk and
foreign exchange fluctuations. In line with
these considerations, I encourage you to
read the details of the 2018 GSPP Offer
in this Prospectus in full and to seek your
own investment or other professional
advice, if required.
Details of the 2018 GSPP Offer
Under the 2018 GSPP Offer, Eligible
Growers will have the opportunity to
acquire B Class Shares. An “Eligible
Grower” is a person who has delivered
Paddy to SunRice in C18 and holds an A
Class Share or B Class Share, either in
their own name or through their Approved
Entity, on Friday, 21 September 2018.
4
Eligible Growers may, either in their own
name or through their Approved Entity,
subscribe for one (1) New Share for every
one (1) tonne of Paddy delivered in the
2018 Crop at the Issue Price (see below).
The Issue Price for the New Shares is $5.71
per share (Issue Price), which is the same
issue price as offered under SunRice’s
dividend reinvestment plan (DRP) in 2018.
The Issue Price represents a 2% discount
to the VWAP of B Class Shares as traded
on NSX between 12 June 2018 and 28 June
2018.
If you wish to participate in the 2018 GSPP
Offer, the Application Money for New
Shares is payable either:
• by payment to SunRice by cheque, bank
draft or electronic funds transfer (refer
to Section 2.1(e) and the instructions
on the Application Form for more
information); and/or
• providing a written direction (Direction
Form) to SunRice to apply all or part
of the September payment payable by
SunRice to you for the Paddy delivered
by you in the 2018 Crop (2018 Crop
September Payment), which is due for
payment on Friday, 28 September 2018.
The Direction Form is attached to or
accompanies this Prospectus.
Purpose of the 2018 GSPP Offer
A close connection with Growers supports
an ongoing, sustainable supply of rice
from the Riverina region. Maintenance of
this connection and supply is important
to SunRice as Riverina Rice and the Rice
Pool business form the foundation of the
SunRice Group and is a key part of the
SunRice Group’s 2022 Growth Strategy.
The 2018 GSPP Offer is designed to
encourage a closer connection between
SunRice and our Growers by enabling
Eligible Growers to apply all or part of their
2018 Crop September Payment to acquire
B Class Shares. The Board considers this
is particularly important to assist new (and
often young) Eligible Growers to build a
shareholding in the Company, especially in
the context of the requirement of A Class
Shareholders to acquire at least 3,000 B
Class Shares. The 2018 GSPP Offer is also
intended to align with the opportunity
given to B Class Shareholders to acquire
B Class Shares under the Company’s
dividend reinvestment plan (DRP) for 2018.
How to participate if you are an
Eligible Grower
Your Directors encourage Eligible Growers
to read this Prospectus in its entirety
before making any decision as to whether
to further invest in SunRice. You should
seek professional investment advice if you
have any queries in relation to the 2018
GSPP Offer.
If you are intending to direct SunRice
to apply all or part of your 2018 Crop
September Payment, please note you
will need to return your completed
Direction Form by 5.00 pm (Sydney
time) on Friday, 21 September 2018.
Please also note, if you have any
outstanding deductions, your 2018 Crop
September Payment will need to be
applied to these deductions before it can
be applied to pay the Application Money
under the 2018 GSPP Offer
If you have any questions regarding your
2018 Crop September Payment amount,
please contact Grower Services on 1800
654 557.
If you have insufficient funds from your
2018 Crop September Payment after
deductions, you can still submit an
Application for New Shares under the 2018
GSPP Offer by the Closing Date of 5.00
pm (Sydney time) on Friday, 21 September
2018, however you will need to pay the
Application Money (or part thereof)
to SunRice by cheque, bank draft or
electronic funds transfer as set out in the
instructions on the Application Form.
In either case, to participate in the
2018 GSPP Offer, you must return your
completed Application Form to the Share
Registry by the Closing Date.
On behalf of the Board, thank you for
choosing to grow rice and for your ongoing
support of SunRice.
Yours sincerely
Laurie Arthur
Chairman
CONTENTS
13
DETAILS OF THE
GSPP OFFER
17
PURPOSE AND EFFECT
OF THE OFFER
31
MARKET PRICE OF
B CLASS SHARES
1. OVERVIEW OF INVESTMENT
2. DETAILS OF THE GSPP OFFER
6
13
2.1 Overview of the GSPP Offer
13
2.2 Allocation Policy
15
2.3 Application Form
15
2.4 Allotment and Quotation
15
2.5 Holding Statement
16
2.6 Taxation
16
2.7 Brokerage, Commission and Stamp Duty
16
2.8 Enquiries
16
3. PURPOSE AND EFFECT OF THE OFFER
17
3.1 Reasons for the GSPP Offer
17
3.2 Proposed use of Funds
17
3.3 Effect on the Company
17
3.4 Effect on Capital Structure
18
3.5 Pro Forma Balance Sheet
19
4. RISK FACTORS
20
4.1 Introduction
20
4.2 Business Risks Facing SunRice
20
4.3 General and Specific Market Risks
26
5. ADDITIONAL INFORMATION
28
5.1 Rights and Liabilities Attaching to B Class Shares
28
5.2 Transaction Specific Prospectus and Continuous
Disclosure Obligations
29
5.3 ASX Proposal
30
5.4 Market Price of B Class Shares
31
5.5 Board and Management
31
5.6 Corporate Governance
32
5.7 Directors’ Interests
34
5.8 Interests of Experts and Advisers
34
5.9 Expenses
34
5.10 Consents
34
5.11 Foreign Shareholders
34
5.12 No Modifications of The Corporations Act or the Listing Rules
34
6. DIRECTORS’ AUTHORISATION AND CONSENT
7. GLOSSARY AND INTERPRETATION
36
37
7.1 Defined Terms
37
7.2 Interpretation
39
1. OVERVIEW OF INVESTMENT
Key Terms of the 2018 GSPP Offer
Question
Answer
Who is the issuer of this
Prospectus?
Ricegrowers Limited (ABN 55 007 481 156) (NSX Code: RGWB) (Company or
SunRice).
What is the 2018 GSPP
Offer?
The Company is offering Eligible Growers the opportunity to acquire B Class Shares
under the Company’s Grower Share Purchase Plan (2018 GSPP Offer).
Further Details
Section 2.1
Eligible Growers may, either in their own name or through their Approved Entity,
subscribe for 1 New Share for every 1 tonne of Paddy delivered in the 2018 Crop
(C18) at the Issue Price (see below).
Participation in the 2018 GSPP Offer is optional.
The Application Money for New Shares under the 2018 GSPP Offer is payable either:
• by payment to SunRice by cheque, bank draft or electronic funds transfer in
accordance with the instructions on the Application Form; and/or
• by providing a written direction (Direction Form) to SunRice to apply all or part
of the September payment payable by SunRice to you for the Paddy delivered
by you in C18 (2018 Crop September Payment), which is due for payment on
Friday, 28 September 2018. The Direction Form is attached to or accompanies
this Prospectus.
The 2018 GSPP Offer is not underwritten, and has no minimum subscription level.
The maximum number of New Shares to be issued pursuant to the 2018 GSPP
Offer is equal to the aggregate number of tonnes of Paddy delivered to SunRice
in C18 by Eligible Growers. As at the date of this Prospectus, it is estimated that
approximately 623,003 tonnes of Paddy will be delivered in C18 in aggregate
(including those tonnes which have already been delivered).1
Who is eligible to
participate in the GSPP
Offer?
The 2018 GSPP Offer is made to Eligible Growers only.
What is the Issue Price
for the New Shares?
New Shares are being offered for issue at an issue price of $5.71 (Issue Price)
per share, which is the same issue price as offered under the Company’s dividend
reinvestment plan (DRP) in 2018. The Issue Price represents a 2% discount to the
VWAP of B Class Shares as traded on NSX between 12 June 2018 and 28 June 2018.
Section 2.1(a)
You are an Eligible Grower if you delivered Paddy to the Company in C18 and
hold an A Class Share or B Class Share, either in your own name or through your
Approved Entity, as at 5.00 pm (Sydney time) on Friday, 21 September 2018. In
accordance with the Constitution, New Shares can only be issued to existing
Shareholders or their Approved Entities. If you are a Grower and you don’t
currently hold an A Class Share, you may be eligible to apply for one. If you want to
apply for New Shares in your Approved Entity you will need to identify this on the
Application Form.
Section 2.1(d)
1. Some of these tonnes may be delivered by Growers who will not be Eligible Growers and who would therefore not be entitled to participate in
the 2018 GSPP Offer.
6
1. OVERVIEW OF INVESTMENT
(CONTINUED)
Key Terms of the GSPP Offer (continued)
Question
Answer
Will the New Shares be
quoted on the NSX or
ASX?
The New Shares will be quoted on the NSX. The Company will make an application
to the NSX for quotation of the New Shares no later than seven (7) days after the
date of this Prospectus.
Further Details
Sections 2.4(b)
and 5.3
Subject to approval, it is expected that normal trading of New Shares on the NSX
will commence on Wednesday, 3 October 2018 (assuming the 2018 GSPP Offer
closes at 5.00pm on Friday, 21 September 2018, as currently scheduled).
As set out in the Notices of Meetings and Explanatory Booklet released by the
Company on 27 July 2018, the Company is seeking Shareholder approval to
implement an ASX Proposal which involves, in general terms, the migration of the
listing of B Class Shares from the NSX to the ASX, and changes to the Constitution
to enable B Class Shares to be acquired by investors generally. If the ASX Proposal
is implemented, it is expected that the B Class Shares will be quoted on the ASX
before 31 December 2018. However, there is no guarantee that the ASX Proposal
will be implemented. No representation is made that the B Class Shares will
become quoted on the ASX.
How many New Shares
can I apply for?
You can subscribe for all or part of the number of New Shares set out in your
enclosed personalised Application Form.
However, New Shares will not be issued if it would result in you holding a number
of B Class Shares which would exceed the B Class Shareholding Limit in the
Constitution.
What is the B Class
Shareholding Limit?
The B Class Shareholding Limit is set out in rule 4.2 of the Constitution. It provides
that a person cannot hold a number of B Class Shares that, when aggregated with
any B Class Shares held by all Associates of that person, exceeds 5% of the total
number of issued B Class Shares.
Sections 5.1
and 5.3
New Shares under the 2018 GSPP Offer will not be allocated to a person to the
extent that it would result in that person’s holdings in B Class Shares exceeding
the B Class Shareholding Limit. In such a case, the Company may allocate a fewer
number of New Shares to the Applicant than the number that they have applied for.
It should be noted that if the ASX Proposal is implemented, then the B Class
Shareholding Limit will be increased from 5% to 10%.
What if I do not wish
to subscribe for New
Shares under the 2018
GSPP Offer?
If you do not wish to subscribe for any New Shares under the 2018 GSPP Offer, you
may do nothing and allow the 2018 GSPP Offer to lapse.
What are the minimum
and maximum amounts
that will be raised under
the 2018 GSPP Offer?
The maximum number of New Shares that will be issued under the 2018 GSPP Offer
is equal to the aggregate number of tonnes of Paddy delivered to the Company
in C18 by Eligible Growers. As at the date of this Prospectus, it is estimated that
approximately 623,003 tonnes will be delivered in aggregate (including those which
have already been delivered).2 Based on a figure of 623,003 tonnes, the maximum
amount that will be raised under the 2018 GSPP Offer is $3.6 million before
expenses.
Section 3.3
and 3.4
There is no minimum subscription under the 2018 GSPP Offer, nor is the 2018 GSPP
Offer underwritten.
2. Some of these tonnes may be delivered by Growers who will not be Eligible Growers and who would therefore not be entitled to participate in the 2018
GSPP Offer. However, as the Record Date for determining eligibility to participate in the 2018 GSPP Offer is not until after the date of this Prospectus, it is
not possible to currently estimate how many tonnes of Paddy would be delivered by Growers who will not be Eligible Growers. However, it is expected that
this number would not be significant.
7
1. OVERVIEW OF INVESTMENT
(CONTINUED)
Purpose and effect of the 2018 GSPP Offer
Question
Answer
What is the purpose of
the 2018 GSPP Offer?
A close connection with Growers supports an ongoing, sustainable supply of rice
from the Riverina region. Maintenance of this connection and supply is important
to SunRice as Riverina Rice and the Rice Pool business form the foundation of the
SunRice Group and is a key part of the SunRice Group’s 2022 Growth Strategy.
Further Details
Section 3.1
The 2018 GSPP Offer is designed to encourage a closer connection between
SunRice and Growers by enabling Eligible Growers to apply all or part of their Paddy
Price to acquire B Class Shares. The Board considers this is particularly important
to assist new (and often young) Eligible Growers to build a shareholding in the
Company, especially in the context of the requirement of A Class Shareholders to
acquire at least 3,000 B Class Shares. The 2018 GSPP Offer is also intended to align
with the opportunity given to B Class Shareholders to acquire B Class Shares under
the Company’s dividend reinvestment plan (DRP) for 2018.
How will the proceeds of The proceeds of the 2018 GSPP Offer will be used to reduce debt and/or fund
the 2018 GSPP Offer be
future growth.
used?
Section 3.2
What is the effect of
the 2018 GSPP Offer on
issued capital and cash
reserves?
Section 3.3
If the 2018 GSPP Offer is fully subscribed (and based on an estimate that
approximately 623,003 tonnes of Paddy will be delivered to the Company in C18),3
then the effect of the 2018 GSPP Offer on the Company’s cash reserves and issued
capital would be to:
• increase the Company’s cash reserves by $3.6 million before the costs of the
2018 GSPP Offer; and
• increase the total number of B Class Shares on issue from 58,366,591 to
58,989,594.
What is the effect of
B Class Shares do not entitle their holder to vote at general meetings of the
the 2018 GSPP Offer on
Company. Accordingly, the issue of New Shares under the 2018 GSPP Offer will not
Control of the Company? have any impact on the Control of the Company.
Section 3.4(b)
What is the maximum
possible dilutionary
effect of the 2018 GSPP
Offer?
There are currently 58,366,591 B Class Shares on issue. Based on an estimate
that approximately 623,003 tonnes of Paddy will be delivered to the Company in
C18,4 if the maximum number of New Shares offered under the 2018 GSPP Offer
are issued, those New Shares would represent approximately 1.07% of the current
number of B Class Shares on issue.
Section 3.4(a)
What are the key dates
of the 2018 GSPP Offer?
See page 3 of this Prospectus – “Key Dates – Timetable of the 2018 GSPP Offer”.
3. See footnote 2.
4. See footnote 2.
8
1. OVERVIEW OF INVESTMENT
(CONTINUED)
Key risks of a further investment in the Company
Question
Answer
What are the key risks
of a further investment
in the Company?
Shareholders are exposed to risks associated with SunRice, further information on
which is set out in Section 4. Many of the circumstances giving rise to these risks are
beyond the control of SunRice and are risks that already exist for the Company and
its Shareholders. The key risks are identified below. However, please refer to Section
4 for further details of these and other risks.
Further Details
Se
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