Dorchester announces structure simplification, dividends

It announced today that it was simplifying its capital structure and planning a share placement.

Combined with the share options on issue, Dorchester expected the moves would boost shareholder funds from $29 million to about $61 million.

The company has 150 million options on issue that convert into ordinary shares at the end of this month if the option holders pay 12.5c per share, less than half the current trading price of 29c.

The options came about in 2010 when Gran Baker’s Business Bakery became involved with a recapitalisation plan and 7200 investors owed about $84 million swap their debenture stock for four different types of security, including the share options.