ACME Printing and Packaging announces Rs. 1.425bn rights issue

ACME Printing and Packaging PLC has announced a significant rights issue to raise Rs. 1.425 billion to fund factory relocation, settle debts, and support a broader financial recovery plan. 

According to the announcement made in a filing to the Colombo Stock Exchange, the rights issue will offer 570,000,000 new ordinary shares to existing shareholders at a price of Rs. 2.50 per share. The issuance is structured on a basis of six new ordinary shares for every one existing ordinary share held. 

This move comes as the company’s Board of Directors decided on September 17, 2025, to increase the number of shares to be issued and amend the objectives of the rights issue initially communicated on September 27, 2024.

The primary objectives for the capital raising are multifaceted. A significant portion of the proceeds will be used to finance the relocation of the company’s factory premises. Additionally, the funds will be allocated to settle intercompany loans and bank borrowings, and to bolster the company’s working capital. 

A key aspect of the rights issue is to support the implementation of measures aimed at preventing further losses and fostering recovery, as presented to shareholders in accordance with Section 220 of the Companies Act. The company’s current stated capital stands at Rs. 835,084,629.00.  The rights issue is contingent upon receiving in-principle approval from the Colombo Stock Exchange for the issuance and listing of the new shares, as well as obtaining shareholder approval at a forthcoming General Meeting. ACME Printing and Packaging PLC, a public quoted company, is a prominent player in Sri Lanka’s flexible packaging manufacturing sector. The company, part of the Lankem Group, has been in operation for nearly 75 years and holds several ISO certifications. 

The company’s principal activity involves manufacturing a wide array of flexible packaging materials for both local and international markets, serving industries such as tea, food, confectionery, milk powder, pharmaceuticals, and consumer products.

The company’s annual report for 2024/2025 highlighted a challenging year, with the Group experiencing a net loss of Rs. 406 million.

The report also noted that the Group’s current liabilities exceeded its current assets by Rs. 1,078 million, resulting in a negative equity position. Despite these challenges, the parent company, Lankem Ceylon PLC, has committed to providing financial assistance to ensure the company can meet its debt obligations.

(NF)