McPhersons shares tumble, begins capital-raising

McPhersons’ shares plummeted a whopping 53% yesterday to close at $1.04 after it resumed trading for the first time since October 27. The company had been in a trading halt to evaluate the effect of the falling Australian dollar on its first-half results.

The company has since announced a “1 for 3 partially underwritten, renounceable rights offer”, meaning that shareholders will be offered one share for every three shares that they already own, at $1.00 per new share.

The company said in a statement that “the purpose of this rights offer is to strengthen the company’s balance sheet, and to fund general working capital.”

“McPhersons’ directors remain confident that the company remains on track to achieve significant earnings growth in the 2010 financial year,” the company added.

The offer closes on December 3rd.

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