Burger Fuel Worldwide has raised $3 million from two of shareholder Milford Asset Management's funds, issuing 1.6 million shares at $1.25 apiece (a one percent discount to its 20-day volume weighted average price).
The Milford Active Growth Fund and Milford Active Growth KiwiSaver Fund also gained another 800,000 shares at the same price from Mason Roberts Holdings, chief executive Josef Roberts and partner Chris Mason's investment vehicle.
That gives Milford 4.6 percent of the company, while public shareholders make up 12.4 percent and the founders retain 83 percent of BurgerFuel.
Chairman Peter Brook said while BurgerFuel stock has traded as high as $1.41 recently, volumes were light and the price represented good value to existing shareholders.
He said Milford understood BurgerFuel’s business model and was supportive of the company’s strategy of investing for growth.
“We think that’s a strong endorsement and recognition of our performance to date”.
Roberts said Milford had requested investment of $3m but the board felt that $2m was sufficient at this stage.