14 Jul

Frankland River Olives 5c up on debut, closes at 25c

By AAP & Andrew Hoobs,

Fremantle-based olive oil producers Frankland River Olive Company Ltd debuted at a premium of 30c on the Australian Stock Exchange, before closing at its issue price of 25 cents on a low day in the market.

Managing director David Carr was slightly disappointed with the debut, saying a tough day on the market and a lack of understanding of the business combined to keep the price below expectations.

“It’s a base to build from,” Mr Carr told AAP.

In April the company announced plans to restructure its managed investment schemes into a single vertically integrated olive business. Growers voted to accept shares in FROC for the groves they owned under MIS, and it was agreed that the Southern Olive Management Company, the management arm of the business, would be acquired by FROC.

FROC raised $5.88 million from the issue of 23.5 million shares by way of a rights issue to shareholders.

It is understood that the company plans to use the funds for marketing and promotional activity, expansion of processing and packaging facilities, capital works and debt management.

FROC, which last year acquired the Parmelia (Larenta) olive project in Gingin, sells olive oil across Australia. The company also announced today that it had sold over 30,000 bottles of its Jingilli extra virgin olive oil for distribution in Shanghai, China, with the possibility of a further 45,000 sales before the end of the year.

The company today also confirmed the appointment of Cape Mentell and Cloudy Bay Vineyards founder Mark Hohnen as company chairman, with David Carr, Merv Lange, and Craig Readhead also on the board.

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