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ZIMBABWE Stock Exchange (ZSE)-listed Tanganda Tea Company is pursuing its proposed US$8 million capital raise through a rights offer and is finalising a circular to shareholders.
Last year, the company abolished plans to migrate its listing to the Victoria Falls Stock Exchange (VFEX), but instead created a new class of shares that will be listed on the US dollar-denominated bourse.
In a notice to shareholders and the investing public, Tanganda said the proposed capital raise through a renounceable rights offer to the existing ordinary shareholders in proportion to their shareholding in the company to raise US$8 million was still under consideration.
“The company is currently finalising the preparation of a circular to shareholders incorporating notice to convene an Extraordinary General Meeting (EGM) of members for the purpose of considering and approving the capital raise,” the company said.
The transactions, according to Tanganda, include the proposed creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the Victoria Falls Stock Exchange (VFEX) as a secondary listing.
“The transactions, if successful, may have a material effect on the company’s share price; accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares,” reads the statement.
Tanganda is an agribusiness company that produces, packs and distributes tea, coffee, avocados, macadamia nuts, and spring water.
In the year to September 30, 2025, group revenue at US$19,2 million declined by 26 percent from the prior year’s US$25,8 million, due to the impact of late rains and the heat stress suffered by plantations during the early part of the season.
The company said challenges encountered in the formal retail markets resulted in a decline in Beverage Division volumes in the first half of the year; however, volumes rebounded in the second half after government policy changes on exchange rates.
Resultantly, the company incurred a loss after tax of US$4,2 million during the year, a shift from the profit after tax of US$1,4 million realised in the previous year.
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