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LARK DISTILLING CO. LTD Capital/Financing Update 2007
65265_rns_2007-03-14_b02e05e8-71b4-4569-9105-307cf79b61c5.pdf
Capital/Financing Update
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Montec International Limited ABN: 62 104 600 544
Level 6, 55 York Street Sydney NSW 2000 Australia
[email protected] www.mnnter-international.com
Telephone: +61 2 9299 0011 Facsimile: +61 2 9299 1499
ASX & MEDIA RELEASE
15 March 2007
The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000
MONTEC CAPITAL RAISING
Montec International Limited (Company) (ASX: MTI) is pleased to announce it is undertaking a capital raising of up to \$4.29 million by way of a placement and pro-rata renounceable rights issue. \$1.2 million of the rights issue is proposed to be underwritten by Patersons Securities Limited (Patersons).
The proceeds will be used to fund capital requirements, including financing the "in store" marketing drive for "dairypure" milk products in the Chinese market, providing working capital for the launch of "dairypure" yoghurts and ice creams, and providing for working capital needs arising from improving markets for Montec's business generally.
This will build on Montec's recent successes, with products now reaching 2,700 retail outlets in Shanghai, Beijing, Qingdao and Dalian and a 47,000 litre production run of "dairypure" and "Meng Tai" product completed in mid January 2007.
Montec has binding commitments for approximately \$0.575 million pursuant to a placement of 11.5 million ordinary shares to sophisticated clients of Patersons and proposes to raise up to approximately \$3.7 million from a partly underwritten one for one renounceable rights issue of up to approximately 74.3 million shares at \$0.05 per share. The placement is subject to Montec shareholder approval to be sought at a general meeting proposed to be convened in mid to late April 2007.
Attaching to the new shares issued under both the placement and rights issue will be one ASX quoted option for every share subscribed with an exercise price of \$0.10 and an expiry date of 30 June 2008. 11.5 million options will be issued under the placement and up to 74.3 million under the rights issue.
Montec expects to lodge a prospectus in relation to the rights issue with ASIC and the ASX on Tuesday, 20 March 2007, which will be despatched to Montec shareholders and otherwise made available on the Company's website www.montec-international.com.au when the securities are offered. Shareholders who wish to acquire securities under the rights issue will need to complete the entitlement and acceptance form that will accompany the prospectus.
The proposed timetable for the capital raising is set out below:
| Event | Dale |
|---|---|
| Lodgement of Prospectus | 20 March 2007 |
| Trading in Rights commences (shares quoted on an ex- | 22 March 2007 |
| basis) | |
| Record Date to determine entitlements under the Rights | 5.00pm, 28 March 2007 |
| Issue | |
| Prospectus and Entitlement and Acceptance Forms | 3 April 2007 |
| Despatched | |
| Rights trading ceases | 12 April 2007 |
| Closing Date for acceptance and payment of subscription | 5.00pm, 19 April 2007 |
| price | |
| Shareholder Meeting to approve Placement | Mid to late April 2007 |
| *All dates are indicative and subject to change. All times are references to time in Sydney. |
Montec requests that its securities be reinstated to quotation.
Ends
| Terry Cuthbertson | Peter Herd |
|---|---|
| Chairman | Managing Director |
| 02 9299 0011 | 02 9299 0011 |
Investor Relations & Media Enquires: Rod North
Bourse Communications Pty Ltd 0408 670 706
ABOUT MONTEC INTERNATIONAL LIMITED
Montec International owns certain Australian, New Zealand and Asian rights, to a unique technology that enables the production of monounsaturated, cholesterol-free dairy products including milk, ice cream and yoghurts. NSW based milk processor Dairy Farmers has been licensed to market products in Australia using the technology.
Montec's principal focus is in developing the market for cholesterol-free dairy products in China using the technology. The company is currently building its range of plain, chocolate and strawberry flavoured milk under the "dairypure" and "Meng Tai" brands with distribution through more than 2,700 outlets predominantly in Beijing and Shanghai. Planned product extensions include ice cream and voghurts.
ABOUT THE CHINESE DAIRY MARKET
The largest sector of the 9 billion litre Chinese dairy market is ice cream (5 billion litres) followed by milk (3 billion litres). The industry has enjoyed 10% plus annual growth for each of the past five years in response to rising incomes, a broader adoption of western-style foods, increased penetration of home refrigeration, improved cold chain distribution systems, and an increasingly sophisticated retail environment. Government support for better nutrition such as through children's milk programs has also been a positive factor in driving growth.