Comvita Edges Toward Capital Raise To Support “recapitalisation”

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Comvita’s creditors person agreed to support a recapitalisation process pursuing nan aborted takeover bid by chap Manuka chromatic shaper Florenz.

The New Zealand-headquartered business said coming (12 December) it deems NZ$25m [$14.5m] will beryllium required to “position nan institution appropriately”, though “no binding commitments” person yet been pledged.

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In nan meantime, a syndicate of Comvita’s lenders person agreed to widen indebtedness maturities coming owed successful January and March to nan extremity of April, on pinch nan “granting of further covenant waivers”.

Those repayment extensions will springiness Comvita leeway to “progress and execute its recapitalisation pathway”, nan institution said successful a statement.

Comvita and Florenz mutually agreed to terminate nan takeover process successful November. The talks collapsed down aft Comvita grounded to get nan required mostly backing from its ain shareholders.

Chair Bridget Coates said astatine nan clip nan Comvita committee would proceed to “advance replacement options, including a recapitalisation process”.

The Florenz takeover had been approved by nan committee successful August, erstwhile Coates described nan challenges Comvita was facing.

“Recent years person been challenging for Comvita and its shareholders, pinch sustained assemblage pressures, softer marketplace conditions and nan demands of a analyzable turnaround weighing connected performance,” she said.

“Comvita has faced ongoing unit from structural changes successful nan Manuka chromatic sector, which continues to look oversupply, value and request volatility, and aggravated competition, including online.”

The statement pinch creditors includes a proviso that Comvita meet a minimum EBIT period successful nan six months to 31 December, on pinch “staged [debt] installation reductions done to nan extremity of March”, nan institution said today. It expects to meet some of those covenants.

Comvita did not disclose nan stipulated EBIT requirement.

According to a trading update issued successful October for nan first 4th of fiscal 2026, Comvita had nett indebtedness of NZ$67.4m, while nan institution generated an EBIT profit of NZ$0.7m, amended than an anticipated NZ$1.7m loss. It was besides an betterment from nan NZ$2.8m nonaccomplishment posted successful nan aforesaid 4th a twelvemonth earlier.

The metric for nan afloat twelvemonth was forecast astatine NZ$13.5m.

Revenue for nan first 4th was NZ$45.6m, supra Comvita’s estimate of NZ$43.8m and nan NZ$42.3m a twelvemonth earlier.

In position of perchance bringing successful much capital, Comvita said coming it is successful talks pinch “several parties”, including existing shareholders and extracurricular investors.

“The committee and its advisers are assessing each options successful statement pinch nan company’s obligations to see nan interests of each shareholders and nan objectives shared betwixt nan institution and its lending syndicate,” Comvita said successful nan statement.

It added nan committee will now beryllium “focused connected executing options that put nan institution successful a sustainable financial position”.