Tantalizers in need of capital, as investors snub firm

The board of Tantalizers has disclosed that the company will be selling a majority stake in the company after holding an Extra-Ordinary General Meeting.

According to a trading document dated December 23, 2022, obtained by Ripples Nigeria on Tuesday, the company resolved to sell 36 per cent of Tantalizers’ existing share capital to private investors.

The stake will be sold by way of Special Placement, with the board given permission to source funds through equity and other financing options in the future for expansion, and debt reduction amongst others.

“The Board of Directors of the Company were authorized to issue by way of Special Placement the 1,788,372,094 unissued ordinary shares of 50 kobo each in the share capital of the Company (being about 36% of the Company’s existing share capital) to potential investors, with the newly issued shares ranking pari-passu with the Company’s existing issued shares,” the document reads.

It added that, “The Memorandum and Articles of the Company and all necessary corporate documents be amended upon completion of the Special Placement, to reflect the Company’s share capital.

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“When the need arises in the future to increase the share capital of the Company, the Board is authorized to do so and source funds through equity and other financing options for expansion, debt reduction, and working capital augmentation.”

This comes as the company’s share has been trading at N0.20kobo since December 2018. In early February 2018, Tantalizers’ share was trading at N0.50kobo.

Demand for the firm’s share has been low among stock market investors, causing Tantalizers’ market valuation to fall by 60 per cent to N642.32 million, from N1.60 billion within five years.

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