Tess Agro to Raise Rs. 250 Mn via Debentures & Warrants 📈

• Capital Raising: Tess Agro PLC plans to issue 2.5 million unsecured debentures at Rs. 100 each, seeking to raise Rs. 250 million. • Debenture Terms: Features a 6% fixed interest rate per annum (payable annually) with a 5-year tenure and bullet repayment at maturity. • Warrant Component: Includes 100 million warrants (40 per debenture). Each warrant allows the purchase of one ordinary share at Rs. 2.20. • Potential Equity: Full exercise of warrants could infuse up to Rs. 220 million in additional capital, supporting future expansion. • Fund Utilization: Proceeds will be used to settle existing borrowings, meet working capital needs, and fund capital expenditure. • Financial Context: As of Sept 2025, the company reported short-term borrowings of Rs. 50.3 Mn and long-term borrowings of Rs. 378.3 Mn. Net assets stood at 38 cents per share. • Market Status: Shares recently closed at Rs. 2.20. The issue remains subject to shareholder and Colombo Stock Exchange regulatory approvals. Based on provisional company disclosures.