Pure Foods Tasmania Completes Oversubscribed Capital Raise

Highlights:

• Pure Foods Tasmania Limited (ASX: PFT) completed a heavily oversubscribed $1.76 million capital raise, surpassing its $1.36 million target.
• The company strengthened its balance sheet by converting $1.19 million in shareholder loans to equity, while directors contributed $610k to the raise.
• FY25 results showed progress, with the net loss narrowing to $2.8m and annualised cost savings of $1.9 million achieved through restructuring.

Pure Foods Tasmania Limited (ASX: PFT) has successfully completed its capital raising initiative, which was heavily oversubscribed, significantly strengthening its balance sheet and supporting the company’s long-term growth strategy. At the time of writing, shares of Pure Foods Tasmania Limited (ASX: PFT) are trading in positive sentiment as investors welcomed the development.

Strong Investor Demand

The company initially targeted a $1.36 million raise but secured approximately $1.76 million, exceeding expectations by about $400,000. All participants in the placement have agreed to a 12-month voluntary escrow, reflecting strong confidence in the company’s turnaround story. Importantly, directors also contributed around $610,000, further aligning management with shareholder interests.

Alongside the raise, $1.19 million in shareholder loans were converted into equity, further improving the balance sheet and reducing financial leverage. In total, PFT will issue 127.5 million new shares and options, with additional shares and options issued under its placement capacity.

Strategic Reset and FY25 Update

The capital injection follows significant restructuring measures taken over FY25. The company reported an improved net loss of $2.8 million, narrowing from $3.9 million in FY24. Cost efficiency programs delivered $1.9 million in annualised savings, while rationalisation of unprofitable lines restored margin integrity, cutting the cost of goods sold from 110% of revenue to 76%. Normalised EBITDA also improved to $(2.3) million, showing early signs that the late-2024 strategic reset is yielding results.

Outlook: Positioned for Growth

Management emphasised that the oversubscribed placement underscores market confidence in PFT’s strategy and long-term growth potential. With a stronger capital base, reduced debt, and a sharper focus on core brands, the company is now positioned to pursue margin expansion, sales acceleration, and targeted M&A opportunities.

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