Cooks Global Foods has announced it is in the advanced stage of negotiations with its Chinese shareholders Jiajiayue Holding Group Limited (JJY, formerly known as Shandong Jiajiayue Investment Holding Co. Limited) and Yunnan Metropolitan Construction Investment Group. Ltd (YMCI) to support the raising of new equity by Cooks to fund the continuing growth of the Esquires Coffee network.
The new funding proposals are subject to ratification by the respective Boards, Chinese government approval and CGF Shareholder approvals. Further announcements will follow as soon as Subscription Agreements are signed.
Releasing the company’s interim report for the six months to 30 September 2016, Cooks Global Foods Executive Chairman Keith Jackson said: “We are delighted with the support of our major shareholders who share the growth, vision and aspirations for the company”.
JJY holds a 25% stake in Cooks and is developing Esquires Coffee stores in a joint venture arrangement in Shandong Province. It is a top-30 retailer in China, operating more than 600 supermarkets as well as shopping malls and convenience stores.
It also invests in commercial real estate. YMCI directly holds a 13% stake in Cooks and is a major property development concern, majority owned by the Yunnan Provincial Government.
Complimentary to the equity raising for the growth projects, Cooks is also offering an issue of Redeemable Convertible Notes to qualified investors with a 3 year term and 9% interest rate that closes on 16 December 2016.
The interim report is attached.
About Cooks Global Foods
Cooks Global Foods operates in world markets and is listed on the NZAX market operated by NZX Limited in New Zealand under the code CGF. It owns the intellectual property and master franchising rights to Esquires Coffee Houses worldwide excluding New Zealand and Australia. 7139041_1
Cooks currently operates or franchises Esquires Coffee Houses in the United Kingdom, Ireland, the Middle East, Canada, Indonesia and China.
Related businesses within the group include New Zealand-based supply companies Progressive Processors and Scarborough Fair, which supply product into both Esquires Coffee stores and other third party customers.
