22nd Sep 2016 09:33
LONDON (Alliance News) - Stellar Resources PLC Thursday said it has invested AUD300,000 into a private Australian company servicing the restaurant and food service industries named Fresho Pty Ltd, giving the London-listed firm a 3.6% stake.
Stellar has purchased 1.1 million shares at 27.0 Australian cents in a private placing worth a total equivalent to around GBP175,000.
Fresho's current customer base lies mainly in Melbourne but expansion is underway. The company streamlines the food order process using its own cloud-based platform that allows both customers and suppliers to save time, money and wastage whilst also generating "powerful" business data analytics.
Essentially, businesses that need to buy food can do so using Fresho's platform, which will then facilitate the order to the business selling food.
Notably, Stellar said, whilst Fresho is a private company it "may consider a public listing in the future."
"The founders and management team of Fresho include several high-profile, banking and start-up individuals as well as food supply and service professionals. The advisory team includes a former director of the Commonwealth Bank of Australia, the CEO of Salta Capital and a former Director of Tasman Group Services, one of Australia's largest meat processors," said Stellar.
"Existing annualised sales through the platform have expanded rapidly and are now in the tens of millions of Australian dollars. Recent expansion into other Australian cities should have a material impact on those volumes," Stellar added.
The investment may be seen as unexpected when looking at Stellar's existing asset portfolio, which has no food or service businesses within it. Stellar's main investment is the 49% stake it holds in a gold mining company in Wales that owns land over the Dolgellau gold belt and the company also has a stake in the huge Horse Hill oil discovery near Gatwick Airport.
Stellar shares were down 6.0% to 0.155 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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