TANGANDA MOVES TO RAISE US$8 AS REVENUE SLIDES,LOSES WIDEN

Zimbabwe Stock Exchange (ZSE)-listed Tanganda Tea Company is pursuing a proposed US$8 million capital raise through a rights offer and is finalizing a circular to shareholders. Last year, the company scrapped plans to migrate its listing to the Victoria Falls Stock Exchange (VFEX), opting instead to focus on its existing structure. In a notice to shareholders and the investing public, Tanganda said the proposed capital raise through a renounceable rights offer to existing ordinary shareholders, in proportion to their shareholding, remains under consideration.

"The company is currently finalizing the preparation of a circular to shareholders incorporating notice to convene an Extraordinary General Meeting (EGM) of members for the purpose of considering and approving the capital raise," the company said. Tanganda explained that the transactions include the proposed creation of a new class of shares, known as Class A ordinary shares, which would be subsequently listed on the Victoria Falls Stock Exchange as a secondary listing. However, it seems the company has decided to pursue the rights offer instead.

"The transactions, if successful, may have a material effect on the company’s share price; accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares," the statement read. Tanganda is an agribusiness company that produces, packs, and distributes tea, coffee, avocados, macadamia nuts, and spring water.

In the year ended September 30, 2025, group revenue declined by 26% to US$19.2 million from US$25.8 million in the prior year, due to the impact of late rains and heat stress suffered by plantations during the early part of the season. The company said challenges encountered in the formal retail markets resulted in a decline in Beverage Division volumes in the first half of the year, although volumes rebounded in the second half following government policy changes on exchange rates. As a result, the company recorded a loss after tax of US$4.2 million for the year, compared to a profit after tax of US$1.4 million in the previous year .