GRD seeks conversion boost

Chairman, Brettney Fogarty, says converting the shares will strengthen the company's balance sheet, increase reported profits, and improve market capitalisation of ordinary shares and share market liquidity.

He says these are all vital factors in attracting long-term capital to the company.

Mr Fogarty says gearing will reduce from 75% to 40% whilst net assets will increase to A$108 million.

"Reported profit will improve by A$4.4m per annum as GRD will no longer have to expense CRP Share dividends as interest.

"Quoted ordinary shares market capitalisation is expected to increase by 70% to over $200 million, with improved liquidity for the shares."

Mr Fogarty says the company should also be considered for inclusion by Standard & Poors in the ASX 200 Index following the move.

A general meeting of CRP shareholders is planned for August to consider approving the share conversion. Currently the shares convert at the rate of 1.25 to 1, but the company will seek to increase the ratio to 1.30 to allow for dividend equalisation.

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