AUS: Dromana says turnaround in sight
Dromana Estate has said it expects a turnaround in its trading performance in its next fiscal year.
The Australian wine producer was responding to a request from the Australian Stock Exchange for information on why it had brought forward this year's vintage by one month, a move which had led to a hike in production costs.
"The company does not expect negative operating cashflows to be of the same level that was incurred in the January to March 2006 period to be incurred in coming quarters, and looks forward to generating positive cashflows by the second quarter of fiscal 2007," Dromana CFO Chris Ritchie said yesterday (4 May).
Ritchie said Dromana had received "strong support" from shareholders on its recent
rights issue and attracted more interest even after the offer closed.
He added: "It is expected that the shortfall in the rights issue will be fully taken up by new investors within the next month. This will raise an additional A$295,000."
Dromana revealed in March that its share rights issue had raised A$1.27m (US$905,000). The share offer, which closed on 20 March, was intended to raise A$1.5m but only received an acceptance level of 81.13%.
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