Wednesday 11th April 2018
|Text too small?|
ASX-listed incubator Powerhouse Ventures plans to double its shares on issue, offering to sell new stock at a discount to raise up to A$5.8 million for working capital and investments.
The company, which typically invests in companies formed to commercialise research out of New Zealand and Australian universities, is offering about 29 million new shares to existing holders at 20 Australian cents apiece. That's a 10 percent discount on the price they last traded before being halted on April 9 for this announcement. The stock has slumped 72 percent in the past 12 months.
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.
The renounceable, pro-rata entitlement offer is on the basis of one new share for each existing share held. As at Dec. 31, it had $1.6 million of cash, selling $1.9 million of investments to largely offset a $2.3 million operating cash outflow, and held $192,183 as at March 31. Its portfolio of investments was valued at $17.5 million, down from the $21.1 million value as at June 30, last year.
It raised NZ$818,118 in a sale of convertible notes at 32 Australian cents apiece in December. At the current price of 22 Australian cents, the market valuation is A$6.38 million on the ASX.
No comments yet
Spark scolded for misleading customers on broadband price hike
Zespri annual profit jumps 77% on higher kiwifruit sales, increased licensing
Freightways says express package growth slowed in 2H, may flow into FY2020
BUDGET 2019: NZ debt target to be more flexible from 2022
Argosy annual profit climbs 36% on revaluation gains, pays slightly bigger dividend
NZ-owned banks says RBNZ capital proposals will make it harder to compete
Sanford earnings hit by vessel impact from crew death
Metroglass' Australian woes drag annual net profit down 69%
Fonterra says more assets under review as it cuts guidance, narrows forecast payout
Active, planning role urged for new infrastructure body