Tuesday 14th March 2017
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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.
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