Monday 3rd August 2009
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ProvencoCadmus, which has failed to convince major shareholders to stump up urgently needed working capital, had its shares and notes halted pending an announcement.
The shares, which traded as high as $1.17 in February 2007, changed hands at 3.5 cents on Friday, rounding out a week-long 54% slide. The eftpos systems provider last week said it was seeking working capital to tide it over as it attempts a broader restructuring. Then on Friday the company reported that major shareholders turned down its requests. It didn’t name the shareholders.
ProvencoCadmus counts Todd Capital, Stephen Tindall and Alan Hubbard among its investors, according to its annual report. The company’s chief executive and chief financial officer have departed this year.
A slump in demand for its systems from retailers, in the wake of global recession, has forced the company to sell assets over the past 12 months while negotiating with its banks.
“The group continues to face risk and uncertainty with its forecast cash flows” while “the payments business is continuing to trade positively,” it said on Friday.
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