Tanganda to raise US$8 mln in rights issue after cash deficit widens

By ETimes

HARARE – TANGANDA Tea Company plans to raise US$8 million through a renounceable rights offer as it seeks to address a widening cash deficit that emerged after the Covid-19 pandemic.

The firm, like many others, felt the full impact of the Covid-19 pandemic.

“As a result, the company emerged out of the Covid-19 pandemic era with a cash flow deficit. The deficit has been exacerbated by significant headwinds namely global climatic phenomena such as El Nino, decline in international crop prices and the shortage and high cost of power,” Tanganda said in a circular to shareholders.

“The aforementioned have consequently resulted in the company’s cash deficit widening to approximately US$6,36 million currently.

“It is against the foregoing background that the Board has seen it necessary for the company to mobilise fresh equity capital which will enhance the business’ ability to finance its working capital requirements and fund critical capital expenditure.”

The firm seeks patient capital to secure packaging inputs, settle supplier debts, meet payroll, upgrade its water bottling plant, connect solar facilities to the grid, and establish a macadamia cracking unit.

Directors are proposing to raise the funds through a rights offer of 263.8 million new ordinary shares, with shareholders entitled to subscribe for one new share for every 0.9896 shares held at the record date of 23 February 2026.

The shares will be offered at a subscription price of US$0.0303 per share, payable in US dollars. The rights offer will open on 24 February 2026 and close on 17 March 2026, according to the circular.

Tanganda said the proceeds will be used primarily to finance working capital requirements and fund critical capital expenditure.