CHANGE is in the air for SunRice, with a vote successfully passed to transfer B class shares from the National Stock Exchange (NSX) to the Australian Securities Exchange (ASX).
Both A and B Class shareholders voted in favour of resolutions to allow for the transfer of B Class shares from the NSX to the ASX.
As a result, once B class shares are listed on the ASX, current restrictions on who can own B class shares will be removed and a 10 per cent B class shareholding limit will apply.
Critically, a listing on the ASX retains SunRice’s dual class share structure and A class grower shareholder control.
SunRice’s existing corporate structure and day-to-day operations, including the rigorous process for determining paddy prices for Riverina growers, will not change as a result of listing on the ASX.
Being listed on the ASX will provide SunRice with access to a deeper pool of capital, improving the ability to raise funds to accelerate the 2022 strategy, as well as reducing business risk and increasing balance sheet strength.
“SunRice is subject to cyclical and unpredictable changes in business conditions, such as the drought presently being experienced in the Riverina,” a statement from the company said.
“Accelerating the 2022 strategy will ensure the ongoing growth and resilience of the business, so Riverina growers can maximise their returns when planting rice is viable again.
“SunRice will advise shareholders of the date of transfer of B class shares from the NSX to the ASX once this is confirmed, and will issue an Information Memorandum for shareholders and potential investors.”
If a capital raising were to be conducted in conjunction with or following the ASX listing, the timing, size and method of the raising would be considered by the board based on a range of factors, including business and market conditions.
“The board appreciates the participation of all shareholders who engaged with directors on this issue over the past few months and who voted on the resolutions, and appreciates the support received in relation to the ASX proposal,” the statement said.
Shareholders have also approved the appointment of an additional external director to provide a broader range of skills to the board, which will be especially beneficial over the coming year as SunRice addresses the present drought situation in the Riverina, as well as accelerated global expansion.
The board will retain a majority of grower directors alongside the four non-grower directors.
Luisa Catanzaro and Dr Andrew Crane were elected as external directors at the company’s annual general meeting in Jerilderie last week.
Both have extensive experience in the agri-business sector.
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