US hedge fund Libra Advisors to pick up $12M stake in NZ's Rubicon
American hedge fund Libra Advisors will acquire a $12-million interest in Rubicon via private placement. The stake buy is designed to shore up the firm's funding position and back its future projects with forestry biotech company ArborGen, according to The National Business Review (NBR).
Under the terms of the said deal, the New York-based investor will purchase 29.3 million shares in Rubicon at $0.4129 apiece, Rubicon stated. The deal will give Libra a 7.2% stake in the New Zealand-based firm, the report said.
David Kasnet, the chairman of Rubicon, said: "This is a very positive development for the company. Libra is a savvy investor, who clearly sees value in Rubicon moving forward. We are extremely pleased to have them coming onto our share register at this time, and we believe they will provide a supportive role in helping the Company achieve its key shareholder goals."
Rubicon currently holds a 59% controlling interest in wood mouldings manufacturer Tenon. The company also owns 32% of the shares of American seedlings biotech firm ArborGen, NBR reported.