Allied Farmers' equity $6.4m in the red after $43m annual loss
The result bodes ill for former Hanover debenture holders who currently own 1.91 billion of Allied Farmers' 2.04 billion shares on issue.
Although it is obviously questionable whether Allied Farmers is still a going concern - the accounts were unaudited - those Hanover investors are facing a massive dilution of their interest in the company, based on these results.
"The completion of the audit in the next few weeks will also confirm the position of the number of additional shares that need to be issued," Allied Farmers' report to NZX says.
"The cost of these additional shares had been fully provided in the accounts … and accordingly shareholders' funds have increased by the value of the shares to be issued," the company says.
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