Wattle Health Australia in capital raising, announces new CEO and chairman

Wattle Health Australia plans to raise up to $62.2 million in capital to fund purchasing the Blend & Pack canning factory in Melbourne.

DAIRY nutritionals manufacturer Wattle Health Australia is seeking to raise up to $62.2 million to take control of the Blend & Pack canning factory and fund ongoing operations of its own business.

WHA has announced a four for five non-renounceable rights issue at 40 cents a share to raise a minimum of $55 million and up to a maximum of $62.2 million.

The company will lift its stake in Blend & Pack from 5 per cent to 80 per cent using the funds.

Blend & Pack’s factory at Hallam in southeast Melbourne has CNCA registration with Chinese regulatory authorities.

WHA has been seeking State Administration for Market Regulation approval by Chinese authorities to enable it to sell organic infant formula through bricks and mortar stores in China.

The company recently announced a joint venture with Chinese dairy nutritional company Nouriz (Shanghai) Fine Food Co, which it hoped would lead to SAMR accreditation.

WH has a joint venture with Organic Dairy Farmers of Australia and Niche Dairy called Corio Bay Dairy Group, which is building an organic spray powder factory in Geelong.

Wattle Health Australia has also announced it had appointed CBDG chief executive officer Tony McKenna as its managing director and chief executive, effective from February 1.

WHA founder Lazarus Karasavvidis will remain as chief executive until then but he has immediately relinquished the role of chairman to another board member, Peter Biantes.

Mr Biantes will act as interim non-executive chairman until a permanent replacement is found.

He said he recognised Mr Karasavvidis’ role in building up Wattle Health.

“Wattle Health Australia is well positioned to be a global leader in organic nutritional dairy products, with an integrated supply chain, a new organic brand in Uganic and setting up the framework for success in the world’s biggest infant formula market, China, with strong JV partners like ODFA and Nouriz,” he said.

Peter Hemphill’s family owns shares in Wattle Health Australia.