Sharechat Logo

Energy Mad on the block as board mulls firm's future

Tuesday 14th March 2017

Text too small?

Energy Mad, the energy efficient light bulb maker and marketer, is up for sale as the company's board weighs up the future of the business.

The Christchurch-based company sought a trading halt on its shares yesterday, and today said the board is "currently pursuing a potential sale of the business" among "various options for the future of the company". A sale would need shareholder approval, meaning it would have to convince NZX-owned fund manager SuperLife, which swapped 2.25 million convertible notes for shares last month lifting its stake to 71.4 percent.

"Energy Mad will make an announcement in the short term regarding this sale if it is to proceed," it said in a statement.

The company has struggled to make ends meet since listing on the NZX in 2011 and has relied on funding lines from SuperLife to keep operating.

Energy Mad lifted operating revenue 48 percent to $3.7 million in the six months ended Sept. 30 and its first-half operating loss shrank to $200,000 from $500,000 a year earlier.

The trading halt on the shares was lifted after the announcement. The stock last traded at 2.4 cents apiece, valuing the firm at $1.9 million. It raised $5 million selling shares for $1 each in its 2011 initial public offering.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls as China's yuan depreciates
COMMENT: ANZ still doesn't get it
FMA says ANZ should have reported Hisco house sale in financial statements
ANALYSIS: Another new head for Xero's American dream
Jetstar losing money on regional NZ services, watching market 'closely'
A2 Milk says rising environmental costs not a 'big risk'
Cavalier Corp shares fall 16% as it announces write-down
Twyford's choice: NZTA or Super Fund for Auckland light rail
Auckland Airport boss upbeat about future but warns against complacency
NZ Shareholders' Association to oppose Stride's directors' fee bump

IRG See IRG research reports