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Comvita has made progress on its recapitalisation plans after a recent takeover bid failed to find enough shareholder support.
The honey exporter said it reached agreement with its lending syndicate, which would improve its capital position while meeting its obligations to consider the interests of all shareholders.
The company's board failed to convince shareholders to support a $56 million deal with Florenz, owned by Canterbury businessman Mark Stewart.
Comvita calculated it still needed as least $25m to position the company appropriately, and was working with several parties interested in supporting a future capital raise, though no binding commitments or arrangements had been agreed.
"The board is very pleased with the level of interest shown by prospective investors and is now focused on executing options that put the company in a sustainable financial position," it said in a market statement.
The agreement with the lending syndicate will extend Comvita's expiring banking facilities, and grant covenant waivers for the 31 March 2026 testing date.
Comvita also agreed to a temporary covenant related to earning a minimum underlying profit for the six months ending in December, along with staged facility reductions through to the end of March, which it expected to meet based on its current business performance.
Comvita said it will provide further updates to shareholders in line with its continuous disclosure obligations.
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