Ariston Holdings' rights issue approved

At an EGM held yesterday, 28 February 2012, Ariston shareholders approved an $8 million rights issue, which management expects to turnaround the group’s fortunes. In September 2011, the group had set out to raise $6 million in 90 days having realised the serious financial strain that the group was under, unfortunately up until now, 120 days later, the company still has not raised the money and will have  to wait another 30 days to access financing. The group only had access to bridging finance last week.

Management also gave a detailed update on the group performance for the four months to January and forecasts for FY 2012. Turnover is forecast to increase to $22.2 million for FY 2012 (FY 2011: $14.7 million) whilst the group is expected to post a Profit Before Tax of $463,000 improving from a loss of $2.8 million for FY 2011.

Funds raised from the rights issue are to be applied to debt restructuring ($3 million), capex ($2 million) and working capital ($2.8 million). We are hopeful that the entrance of Afrifresh Group which is expected to take over the Emvest stake, should result in significant value addition for Ariston. Afrifresh has a distinct presence and experience with 250 products and a presence in 15 countries. Mr C Conraide (CEO for Afrifresh), Mr PT Spear (incoming Group CEO for Ariston) and Mrs S Payne joined the Board.