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Pro-Pac Packaging’s $30m rights issue has set the company back on an even keel, with operating cash flows set to return to a more normal operating level for the next quarter.

The company expects to come out of its trading halt later this month. As at 31 December, Pro-Pac had cash on hand of $3.1m and unused facilities of $19.5m.

The rights issue has been used to bring trade creditors in line with trading terms. This was partially offset by positive working capital realisation from an inventory reduction programme and collections in trade debtors.

The group’s finance facilities now comprise a $30m debtor facility from ScotPac, a $9m ANZ bank overdraft, and a $4.1m standby credit arrangement with ANZ. Of the $43.1m available Pro-Pac has drawn down $32.5m leaving $19.5m undrawn.

Its second quarter revenue of $91.5m was down on first quarter of $94m, with the industrial segment 14 per cent lower as the Source & Sell business was exited, which represented $2.2m of the first quarter revenue. The industrial segment was also impacted by shipping delays from China, but the company expects to recover these revenue shortfalls in the third quarter.

Food & Drink Business

Award-winning South Australian distillery, Prohibition Liquor, has closed its equity crowdfunding campaign, after raising $2.693 million from 1183 investors – becoming the third largest liquor raise in Australian crowdfunding history.

Former CEO and director of FAL Healthy Beverages (FAL HB), Efthymios (Tim) Xenos, has been found guilty of making business decisions while bankrupt, and using company funds to pay personal legal costs, in a case that has taken almost a decade to resolve.

Hang 10 Distillery was created by Deon Rowe and Marine Raynard after the ABC’s War on Waste series inspired them to find a way to tackle food waste by making sustainable spirits. Keira Joyce speaks to the pair about the road to making a world-first whisky with leftover sourdough.