Alert: New Zealand King Salmon (NZK.NZX)
Loss & Rights Issue at Massive Discount
One of the companies we cover, the dual listed New Zealand King Salmon (NZK), has announced a large loss for its full financial year and also a capital raising through a rights issue.
We previously did a very basic analysis of the company's interim accounts which we posted here on 5 February, 2022.
We addressed some of our concerns in the accounts, specifically; the early termination of forward cover, lack of profitability and unrealised biological asset profits included above the line.
The company has advised a loss for the financial year ended 31 January, 2022 of $73 mn.
The company has announced a 2.85 for 1 rights offer to raise $60.1 mn. The offer is at 15 cents, a massive discount to the share price just before the announcement.
The share price has consequently and obviously fallen and is currently 70 cents as this alert goes out.
As soon as the annual financial statements are to hand we will analyse them and post the analysis here.