Monday 9th April 2018
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ASX-listed incubator Powerhouse Ventures shares are in a trading halt pending plans to raise new capital, which the Christchurch-based firm says will cover operating costs and new investments.
The company sought the trading halt until it announces the outcome of the planned capital raise or the open of trading on April 13, it said in a statement. The shares last traded at 22 Australian cents, having slumped from the A$1.07 price they were sold at in an initial public offering in 2016.
"The reason for the trading halt is that the company intends to make an announcement regarding a capital raising to fund existing and new start-up ventures in Australia and New Zealand, working capital requirements, and operational expenses," general counsel Rachel Triplow said.
Powerhouse has been liquidating assets and cutting costs to address its funding position after the ASX questioned whether it had the cash to operate last year, and at the annual meeting in August, chair Russell Yardley told shareholders it didn't want to raise capital when the share price was depressed, trading at around 34 Australian cents.
It raised $818,118 in a sale of convertible notes at 32 Australian cents apiece in December. They pay interest of 12 percent and are repayable on Dec. 22 if not converted to shares.
The company held $1.6 million in cash as at Dec. 31, selling $1.9 million of investments to largely offset a $2.3 million operating cash outflow.
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