Second Right issue benefits UNITY FOODS as 1QCY20 shows highest ever sales

July 20, 2020 (MLN): The Unity Foods Limited (PSX: UNITY) has issued its quarterly progress report to the Pakistan Stock Exchange on the utilization of proceeds of second Right Issue of the company.  

As per the report, the process of proceed utilization of 2nd Right issue of the Company remained slow during the quarter under report due to COVID-19 linked lockdowns.

The company apprised to exchange that the Assets acquired from the proceeds of right issue before the pandemic spread benefited the Company and its sales have progressed rapidly with January-March 2020 quarter showing highest ever sales of the Company.

The table below provides the summary of the quarterly sales since the announcement of 2nd Right issue.

The report further stated that there has been no significant new acquisition of assets and also no major deployment of funds in other areas like civil construction as businesses either remained closed or were not fully geared to render the requisite services.

Therefore, no material progress has taken place during April June 2020 quarter. The proposed plan of asset acquisition remains on hold. Most of the construction and other work has also either slowed down or completely stopped during this period, the report added.

The company assured the Exchange that once the overall situation improves, the Company would restart the activities relating to planned acquisition of assets and other related activities, as per Right Issue proceed utilization announced in February 2019.

In its last quarterly report, the company informed about the commencement of production at Crude Palm Oil (CPO) refinery, after completing the acquisition process and taking the physical possession of the refinery.

For the unversed, UNITY announced its second Right Issue on February 19,2019. The issue constituted 375 million shares at face value of Rs 10 each raising Rs 3.75 billion. At the time of announcement of Right Shares, the company had 169,050,000 ordinary shares and each of the then existing share was entitled to about 221.83% right shares.

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