Provenco stock sinks further as shareholders decline request for working capital

Friday 31st July 2009

ProvencoCadmus shares fell, bringing their week-long slide to 54%, after the provider of electronic point-of-sale systems said some of its largest shareholders had declined to assist with urgently needed working capital.

The company, which traded as high as $1.17 in February 2007 and counted Todd Capital, Stephen Tindall and Alan Hubbard among its investors, slipped 5% to 3 cents today.

On July 28, the company said it was seeking expressions of interest from potential investors to support working capital while it prepares for a broader restructure. The complexity of the changes and weaker-than-forecast trading performance during May - July period “has placed significant pressure on the resources of the business” and it was in talks with its banks and existing shareholders for short-term assistance.

Today, the company said the talks are ongoing. “Some of the largest shareholders have declined to fund further working capital, however other shareholders, and broader restructuring avenues are still being pursued.”

“The group continues to face risk and uncertainty with its forecast cash flows” while “the payments business is continuing to trade positively,” it said.

Businesswire.co.nz

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