The success of a small-scale trial with cans has encouraged GRB to invest $7.8m in a full-scale can filler, an upgraded bottle filler, and other site improvements. Costs will largely be met by an equity raise at $0.095 to bring in $7.6m. The packaging line enhancements are expected to reduce costs and wastage such that GRB expects a $1.5-2.5m EBITDA impact by FY22. Management’s challenge is to effectively manage risks associated with plant upgrades at the same time as implementing east coast expansion plans, however successful execution would sustain the positive strategic momentum. We up our medium term forecasts and maintain a BUY call with a target price of $0.125 (prior $0.122).
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