SUNRICE looks set to list on the Australian Securities Exchange (ASX) following a vote in favour of the move taken at its annual general meeting in Jerilderie today.
SunRice’s A and B-class shareholders voted in favour of transferring B-class shares from the National Stock Exchange (NSX) to the ASX, and the meeting also ratified the proposal to appoint an additional external director to the SunRice board.
It also voted in favour of electing two new external directors, Luisa Catanzaro and Andrew Crane.
Both Mr Catanzaro and Dr Crane have extensive experience in the agribusiness sector and also in implementing expansion strategies in Asia, skills which will be of value to SunRice as it accelerates its 2022 Strategy.
Once B-class shares list on the ASX, current restrictions on who can own them will be removed, and a 10-per-cent B-class shareholding limit will apply.
Listing on the ASX will see SunRice’s dual-class share structure retained, with A-class shares reserved for growers.
SunRice’s existing corporate structure and day-to-day operations, including its process for determining paddy prices for Riverina growers, will not change as a result of listing on the ASX.
Listing on the ASX will provide SunRice with access to a deeper pool of capital, improving the ability to raise funds to accelerate the 2022 Strategy, as well as reducing business risk and increasing balance-sheet strength.
SunRice is subject to cyclical and unpredictable changes in business conditions, such as the drought presently being experienced in the Riverina, and its 2022 Strategy will ensure ongoing growth and resilience of the business, so growers can maximise returns when planting rice is viable again.
SunRice will shortly advise shareholders of the date of transfer of B Class shares from the NSX to the ASX, and will issue an Information Memorandum for shareholders and potential investors.
If a capital-raising were to be conducted in conjunction with or following the ASX listing, the timing, size and method of the raising would be considered by the board based on a range of factors, including business and market conditions.
Shareholders have approved the appointment of an additional external director to provide a broader range of skills to the board sought by the board over the coming year as SunRice addresses the present drought situation in the Riverina, and accelerates global expansion.
Grower directors with seven positions will continue to form a majority on the board, alongside four non-grower directors, including the CEO.