Merko Gıda San ve Tic AŞ has signed a funding facility for TRY61.5 million under a Share Subscription Facility ("SSF") and Warrant agreement, (the "Agreement") with GEM Global Yield Fund, the private alternative investment group.
This TRY61.5 million will be raised from a combination of instruments, TRY45 million in capital from the SSF and TRY16.5 million from the Company issuing 11 million warrants that can be exercised within three years by GEM Global Yield Fund, at the price which represents TRY1.5 Per Share.
This new agreement will be used to provide strength to the working capital of the company.
Merko is a processor of tomatoes into raw material for the food industry world-wide. One of largest processor-exporters in Turkey, Merko was established in 1982 and is proud to have served its customers and suppliers for 35 years.
In 1994 Merko went public with an IPO and today the major shareholders are managing the company, with the balance of shares quoted on the Istanbul Stock Exchange.
Located in the Bursa region, Merko processes over 3,000 metric tons a day of tomatoes into tomato paste and diced tomatoes for industrial applications worldwide. With a large percentage of its customers based in export regions, Merko is a globally recognized supplier.
The company is at the forefront of introducing HACCP and Total Quality to every product line, and in-house training programs are run on a regular basis in partnership with Universities. Units in the group have successfully completed audits from BRC from the UK and ISO accreditation are kept up to date. The company is also at the forefront of GAP (Good Agricultural Practice) initiatives, especially in partnership blue-chip companies.
Global Emerging Markets (http://www.gemny.com) was founded in 1991. GEM is a USD 3.4 billion investment group having completed 375 transactions in 68 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. GEM's funds include: CITIC-GEM Fund, Kinderhook, GEM Global Yield Fund, GEM India and VC Bank/GEM Mena Fund*.
(*GEM exited both its LP and GP stakes in Q1 2010.)