Straightedge closes offer, to return shareholder funds

By NZPA

Friday 6th September 2002

Straightedge Ltd has abandoned plans to raise funds for the acquisition of Carter Holt Harvey's building software division of the same name.

Last month Straightedge extended its offer to September 27 after failing to meet the $4.1 million subscription level.

Straightedge chairman Marc Potter said in a statement today that closing the offer and refunding investors' funds was "the most responsible and appropriate thing to do at this point in time.

"The board reassessed that the current funding committed would not be enough, combined with a slower than anticipated ramp-up of sales to fund the business over the next 12-18 months," Mr Potter said.

Carter Holt Harvey said it would ensure investors received the original issue price of their shares.

"The Straightedge board is working with Carter Holt Harvey to find the best and quickest means of doing this, which we will announce in the next seven days," Mr Potter said.

Straightedge is listed on the New Capital Market but planned to list on the main board after buying Carter Holt Harvey's Straightedge division.

Comments from our readers

No comments yet