Pure Foods Tasmania makes ASX debut after successfully raising $3.5 million

Pure Foods Tasmania will make its debut on the Australian stock exchange today after raising $3.5 million through a public offer and finalising a takeover by Bunji Corporation (ASX: BCL).

The public offer sought to raise a minimum of $3 million and was able to accept over subscriptions of up to $500,000.

It closed with commitments in excess of the maximum amount offered, with the directors of Pure Foods agreeing to accept over subscriptions to raise the full $3.5 million.

Managing director Michael Cooper said the funds would be invested in the growth of Pure Foods’ existing businesses, with a growth strategy focused on the acquisition of synergistic or complementary food and beverage businesses in Tasmania.

“We list today with a business in very good shape, despite the current environment, and a very promising outlook,” he said.

“We look forward to building on our core competencies and market position to deliver on our strategy for existing and new shareholders.”

COVID-19 update

Mr Cooper said Pure Foods had not been adversely affected by the COVID-19 period, and its two premium food businesses – Tasmanian Pate and Woodbridge Smokehouse – continue to display strong operational and financial performance.

The business had experienced recent increases in online store purchases – including a new agreement with Bruny Island Cheese to sell Woodbridge products through its online ordering portal – as well as increased sales in independent supermarkets.

Export markets and local supply chains remain strong.

Business results

Tasmanian Pate sales figures for the year ending 31 March were ahead of the previous corresponding period, with a strong increase in March 2020 monthly sales compared to 2019.

Woodbridge Smokehouse delivered record revenue in March and continues to maintain a competitive position in the market for salmon and trout, with recent negotiations securing more favourable supply arrangements for the business.

“We know it is likely that the recent strong performance of [our] businesses has, in part, been due to the impact of COVID-19 and an increase in home consumption and stocking of food products,” Mr Cooper said.

“This increase is likely to be temporary and may trail off as the situation with respect to COVID-19 stabilises.”

Backdoor listing

Pure Foods Tasmania was formed as a private company in 2015 to acquire, grow and develop premium food businesses in the state.

In December, the company entered into a share sale agreement with Bunji Corporation, whereby Bunji would acquire 100% of Pure Foods following the $3.5 million offering.

The company is in the process of finalising its name change to Pure Foods Tasmania.

It will use the BCL ticker code until 5 May, when it will change over to PFT.