FosRich rights issue, super store groundbreaking set for September

CEO of FosRich Company Limited, Cecil Foster, says investors should be able to participate in the company’s rights issue by the end of September.

A rights issue is when a company creates new shares and gives its existing shareholders the right to purchase them at a discounted price.

Earlier this year, FosRich shareholders approved a 10:1 stock split, which occurred in July, and a rights issue and/or additional public offer (APO).

An APO is when a company creates new shares and offers them for sale to anyone in the public, unlike a rights issue which is only offered to existing shareholders.

Speaking on Taking Stock with Kalilah Reynolds, Foster said the company is finalising the required documents and should have more information on the rights issues in the next few weeks.

The CEO said that the company decided to do a rights issue instead of an APO because it is not seeking to raise a large amount of capital.

“We wanted to use the remaining share capital that was outstanding, so it’s just a small $140 million we’re going to the market for and I think the market, from the indications, we don’t have to do an APO,” he said.

Superstore groundbreaking

September will be a busy month for the company, as Foster said it is also looking to break ground on its 120,000 square foot superstore.

The store, which will see FosRich entering the commercial real estate rental market, will be located across from the company’s flagship store at 76 Molynes Road in Kingston.

“We’re trying to build a lifestyle superstore where you can wait out the traffic before you go home,” Foster said.

He noted that the compound will feature 20,000 square feet of space for business process outsourcing companies, as well as fast food restaurants, fine dining, banking facilities and recreational space.

The CEO said construction is expected to be completed 16 months after it begins, bringing the grand opening to early 2024.

Revenues and profits up!

Foster said that this is likely to lead to an increase in revenues and profits.

For the six months ending June 30, FosRich reported almost $300 million worth of net profits, up from $115 million for the corresponding period last year.

According to Foster, this was a result of several marketing and business strategies to offset the impact of the COVID-19 pandemic.

He explained that the company implemented a new policy to help collect some of its outstanding funds.

“We helped them [some of our customers] to be more efficient by speaking to them and helping them see the benefit of us getting a post-dated check either for 7 days or 15 days,” he said.

The CEO said that this prevents customers from using the funds for payment on something else.

In addition to this new policy, Foster said that the company was intentional with its inventory purchasing, given the continued supply chain issues.

“We calculated that once you have the items that the customers need, even if they have to pay a little more to get it, they will,” he said, noting that FosRich always has up to 6 months worth of inventory at a time.

Foster said that the company also increased its staff to provide customers with the best shopping experience.

WATCH THE INTERVIEW HERE

Sashell Williams2024-09-03T21:40:31-05:00