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Bakery boys end up holding 65% of Ecoya stock, 29% of warrants after underwrite

Monday 10th May 2010

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Ecoya’s underwriter, Business Bakery LP, has ended up owning 65% of the scented candle maker after chipping in as underwriter to ensure its initial public offering met its target of $10 million.

Business Bakery owns 27.9 million of Ecoya’s 43.1 million shares on issue, according to a substantial security holder notice today.

It was granted about 720,693, or 29% of Ecoya’s Series 1 warrants and the same amount of the Series 2 warrants, the filing shows. 

Ecoya raised $10.1 million in its IPO at $1 apiece. The shares last traded at 99 cents.

Business Bakery is the investment vehicle of 42 below founders Geoff Ross, Grant Baker and Stephen Sinclair, whose shares are subject to a lock-up until Ecoya has posted its March 2011 results.  

Ecoya’s 2011 earnings are forecast at $8 million, according to the prospectus, up from $3.9 million in the year ended March 31. 

Business Bakery subscribed for 100 shares on Ecoya’s incorporation and for 27.4 million shares on December 31, capitalising $2.9 million of shareholder advances.

The shares were consolidated down to $25 million on March 24 and Business Bakery subscribed for 2.88 million shares in the IPO.

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