Veritas Investments receives outstanding response to rights issue
NZX-listed shell company Veritas Investments Limited (“Veritas”) announced today the very successful outcome of its 2
for 1 rights offer that closed last week.
In a very strong show of support, 83% of rights were exercised, raising around $700,000 of new share capital for
Veritas. This will increase share capital some 165% and provide the working capital to pursue the investigation of
suitable businesses for Veritas to acquire. New shares taken up under the rights issue are expected to be allotted on 8
June 2012 and commence trading on the NZX on 11 June 2012. Following allotment, the number of shares on issue will
increase from 20.9m to 55.5m.
Chairman Mark Darrow commented “We have been delighted with the response – this result certainly exceeded our
expectations, especially considering the investment is at this stage in a shell company. This provides the scope and
resources to now aggressively pursue a suitable business or businesses.”
Given the positive response, the Directors have elected not to place the unexercised rights.
All three founding Directors have actively participated in the Rights issue. Following allotment, director Tim Cook
along with associate Collins Asset Management will remain the cornerstone shareholders collectively holding 19.99%,
Managing Director Simon Wallace will have a 15.74% shareholding, while Independent Chairman Mark Darrow will have
increased his shareholding to 4.99%.
“Our first task was securing the listed shell and setting up the governance framework; secondly a modest capital raising
to provide the required resources to Veritas. We have had a number of approaches of interest and generated a number of
ideas which we will now pursue with energy, and will continue to keep the market updated should any deal be imminent. We
thank the shareholders for their support, and take the opportunity to warmly welcome a number of new shareholders to the
company.” concluded Darrow.
Ends