Farm Pride Foods Limited (AU:FRM) has released an update.
Farm Pride Foods Limited is facing a challenge with Avian Influenza affecting 36% of its production capacity, prompting an operational review to cut costs during the anticipated period of reduced egg production. To mitigate the impact, the company is proposing a $6.17 million rights issue, underwritten by an entity associated with its Non-Executive Chairman, aimed at supporting recovery efforts, expanding operations, and covering capital expenditures. Shareholders will be given the chance to increase their stake in the company, with further details and approvals to follow.
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