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SOV - Sovereign Food Investments Limited - Application of rights offer proceeds

Release Date: 24/03/2011 17:26
Code(s): SOV
Wrap Text

SOV - Sovereign Food Investments Limited - Application of rights offer proceeds SOVEREIGN FOOD INVESTMENTS LIMITED Incorporated in the Republic of South Africa Registration Number 1995/003990/06 JSE Code: SOV ISIN Number: ZAE000009221 ("Sovereign" or "the Company") APPLICATION OF RIGHTS OFFER PROCEEDS Sovereign shareholders are referred to the announcement published by the Company on SENS on Monday, 14 March 2011 wherein the results of the rights offer to raise R150 million ("Rights Offer") were announced. Subsequent to the successful completion of the Rights Offer, Sovereign utilised the gross proceeds of R150 million from the Rights Offer to repay interest bearing debt which should result in an additional cash flow saving of approximately R4 million per month, comprising both interest and capital repayments. The reduction of interest bearing debt has furthermore allowed Sovereign`s management ("Management") to extract further value from the Rights Offer process arising from more beneficial lending terms and conditions. Mike Davis, Sovereign`s Chief Executive Officer, said: "We would like to thank Sovereign`s shareholders for their strong support of this process and we aim to extract further value from the Rights Offer in the future as a result of Sovereign`s improved operating position." The information contained in this announcement has not been reviewed or reported on by the Company`s auditors. Port Elizabeth 24 March 2011 Corporate Advisor and Sponsor One Capital Date: 24/03/2011 17:26:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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