Pure Foods Tasmania Completes $1.76m Capital Raising to Support Growth Strategy
Pure Foods Tasmania (ASX: PFT) has successfully completed a strongly oversubscribed capital raising that brought in $1.76 million, exceeding the original $1.36m target.
The placement included $610,000 from directors and saw all participants agree to a 12-month voluntary escrow, underscoring confidence in the company’s recovery strategy.
Alongside the raise, shareholders converted $1.19m in loans to equity, materially strengthening the balance sheet and supporting the company’s push toward profitability.
Capital Structure Reset
Pure Foods will issue a total of 127.5 million new shares and the same number of options under shareholder-approved terms, along with a further 19.9m shares and options through placement capacity.
Executive chair Malcolm McAully said the strong investor demand reflected market recognition of the turnaround under way and confidence in the company’s long-term growth plans.
The capital injection will improve the company’s cash position from $88,000 previously to $1.85m, and fund sales expansion, distributor partnerships and marketing support, while also allowing Pure Foods to restructure and consolidate manufacturing operations.
Management has set an annual revenue target above $8m, noting the business had previously achieved that scale and now has the structure to convert growth directly into earnings.
Early Turnaround in FY25 Results
The capital raising followed release of Pure Foods Tasmania’s preliminary full-year results to 30 June 2025, in which it reported a net loss of $2.8m, a $1.1m improvement on FY24.
The company delivered annualised cost savings of $1.9m, while restoring gross margin integrity with cost of goods sold falling from 110% of revenue to 76%.
EBITDA came in at a loss of $2.6m, with Pure Foods attributing the improvement to a streamlined product portfolio and prioritising cash flow over top-line growth.
“This turnaround wasn’t theoretical—it’s been operational, cultural, and financial,” Mr McAully said, “the business is no longer broken”.
Three-Pronged Strategy
Pure Foods Tasmania is now advancing a three-pronged growth strategy centred on organic sales momentum, product innovation and selective acquisitions.
The company has already expanded its supermarket footprint from 300 to around 900 stores in September, while also relaunching products and progressing export discussions in Asia and the Middle East.
Management said the improved balance sheet provides a platform for disciplined mergers and acquisitions, with several opportunities currently under review, and believes the combination of fresh capital, reduced debt and improving financial performance sets the stage for scalable returns.
The directors added that shareholder support and management alignment had created a strong foundation for the next phase of the company’s recovery and expansion.