Shares in diversified food company Freedom Foods Group Ltd (ASX: FNP) are on the up today, rising 2% to $5.10 at the time of writing – a 22% jump from a share price of $4.18 at this time last year.
On March 16, Freedom Foods announced a fully underwritten $200m equity raising which included a non-renounceable retail entitlement offer on a 3 for 29 basis at a price of $4.80 per share, a 6% discount to the 30 day VWAP and a 4% discount to the current price.
The institutional entitlement offer and placement has already raised proceeds of $181.5 million, with a further $18.5 million expected via the retail entitlement offer.
Freedom will use the funds to accelerate capital expenditure programs and bolster its balance sheet to prepare for future growth opportunities.
Freedom maintains a solid foothold in the allergy-free health food space and announced a sales revenue jump of 29% to $159.6 million for the half-year to December 31, 2017 on March 1, with a 28% increase in EBDITA to $16 million.
Freedom products are gaining popularity across Australia, North America, the Middle East, China, SE Asia and New Zealand, with Freedom booking solid share price gains in the last 5 years and the company underpinned by solid fundamentals.
