Tony Falkenstein to pump $400,000 into IRG

Thursday 3rd September 2009

Tony Falkenstein’s Edwin Trust has offered to inject capital into Investment Research Group, helping strengthen the balance sheet two weeks after the investment advisory and brokerage group gained a waiver from its banks over a covenant breach.

The trust, which is associated with the Just Water International chief executive, will buy some 17.8 million shares at 2.25 cents apiece in IRG for $400,000. The deal is subject to shareholder approval and a vote will be held at next month’s annual meeting.

“We have previously announced that we had intended to raise further capital and we are pleased to advise that an agreement has been reached with the Edwin Trust,” managing director Brent King said in a statement.

“We have made very good progress with the group over the last two months and we are now well positioned to take advantage of the opportunities to grow the business.”

Last month IRG signed a letter of offer with its bank to confirm ongoing funding support. IRG was suspended from trading on the NZAX market on August 11 for a late filing of its annual report. It resumed trading this week.

The shares, which trade infrequently, slumped 61% to 1.1 cents on the exchange yesterday.

Businesswire.co.nz

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