June 20, 2022 (MLN): Unity Foods Limited (PSX: UNITY) has identified site for establishment of Oil Terminal storage capacity and is now in process of closing the purchase of land, company said in its progress report on utilization of the proceeds of Right Issue.
This will fit well with the future strategy of the company and will allow it to be a cost efficient national edible oil and staple food processor, report said.
On utilization of proceeds, the company stated that the work on stipulated projects remained slow due to the impact of last wave of COVID-19 which has slowed down construction/manufacturing activities.
However, with Covid now subsiding, the Company expects to complete remaining additions to the machinery once it is delivered. Meanwhile, the Company remains committed to executing its well laid down expansion plan as per strategy.
Item wise breakup revealed that the company has so far utilized 50.68% of the proceeds for the acquisition of Port Qasim Refinery and machinery additions to Port Qasim Refinery.
It is expected that the remaining machinery additions to Port Qasim Refinery will be delivered by end of the year 2022, company said.
Company further stated that the remaining unutilized amount will be fully utilized to set up the supporting infrastructure by the time machinery is delivered and installed.
To recall, on February 19, 2019, UNITY announced its Right Issue at 221.83%. The issue comprised 375 million shares at face value of Rs10 each amounting to Rs3.75 billion.
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