Dietary supplement maker HUMET said its US unit HUMET-PBC North America decided to place a 51% stake in Canada's Enerex Botanicals into another US HUMET unit. HUMET-PBC North America's capital will be raised by $1.2 million through a new share issue.
The stake in Enerex Botanicals, held by HUMET'S US unit HUMET-PBC North America will be placed into HUMET North America, wholly-owned by the parent company. At the same time, outside investors will subscribe shares newly issued by HUMET's other US unit, HUMET-PBC, worth $1.2 million. The fresh capital will be used to make acquisitions and achieve strategic goals, HUMET said.
As a result of the share issue, HUMET's stake in HUMET-PBC North America will fall under 50%, but it will still manage the company under an agreement with the outside investors. HUMET will also get a five-year option to buy the newly issued HUMET-PBC shares for $1.2m. The option may be exercised at once or in parts during the period. HUMET also has received a five-year option to raise the capital of HUMET-PBC by up to $1.2 million. The outside investors has an option to carry out another capital increase of at most $1.2 million within two years on the condition that HUMET is carrying out a similar size increase.
HUMET said that its voting rights in Hungary-based REANAL stay above 51% following the transaction which will leave its control over the company unchanged. (MTI-Econews)